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NOMIC  CONDITIONS 


IN  THE 
PHILIPPINES 


MILLER. 


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ECONOMIC- CONDITIONS  IN 
THE  PHILIPPINES 


BY 

HUGO  H.  MILLER 

u 

FORMERLY   CHIEF,    INDUSTRIAL   DIVISION 
BUREAU   OF  EDUCATION,  MANILA 


REVISED  EDITION 


GINN  AND  COMPANY 

BOSTON     •     NEW    YORK     •     CHICAGO     •     LONDON 
ATLANTA     •     DALLA-S     •     COLUMBUS     •     SAN   FRANCISCO 


COPYRIGHT,  1920,  BY  HUGO  H.  MILLER 

ALL  RIGHl-S   RESEBVBD 

320.3 


tgfte  iatfttngam  grctf< 

GINN  AND  COMPANY  •  TRO- 
PKUnORS  •  BOSTON  •  U.S.A. 


i.x. 


PREFACE  TO  THE  FIRST  EDITION 

This  book  is  written  for  beginners  in  the  study  of  economic 
conditions  in  the  Philippines.  Its  object  is  to  explain  the 
economic  position  of  the  Filipinos  in  their  own  Islands  and 
in  the  world  in  general,  and  to  state,  analyze,  and  discuss 
economic  conditions  found  here.  Theoretic  economics  enter 
into  this  discussion  only  as  subordinate  to  and  explanatory 
of  actual  fact.  It  is  believed  that  this  study  will  give  to 
students  an  idea  of  actual  economic  conditions  existing  in 
the  Philippines  and  a  comparative  idea  of  those  found  in 
other  countries,  and  at  the  same  time  will  result  in  a  knowl- 
edge of  the  natural  laws  upon  which  all  economic  discussion 
and  reasoning  must  be  based. 

'  Throughout  the  book  the  data  obtained  from  special 
economic  reports  by  teachers  are  presented  in  collective 
form.  For  reference  purposes,  information  which  warrants 
special  notice  is  credited  to  the  teacher  who  furnished  it. 

I  am  also  indebted  to  the  following  persons  for  reviewing 
the  portions  of  the  manuscript  which  treat  subjects  in  which 
they  are  particularly  interested.  From  the  Bureau  of  Agri- 
culture :  Mr.  Otis  W.  Barrett,  Chief  of  the  Division  of  Experi- 
ment Stations ;  Mr.  P.  J.  Wester,  Horticulturist ;  Mr.  M.  M. 
Saleeby,  Fiber  Expert ;  and  Mr.  C.  M.  Connor,  Chief  of  the 
Agronomy  Division.  From  the  Division  of  Ethnology,  Bureau 
of  Science :  Dr.  M.  L.  Miller,  Chief ;  Mr.  H.  Otley  Beyer 
and  Mr.  E.  B.  Christie.  Dr.  James  A.  Robertson,  Librarian, 
Philippine  Library ;  Father  Jose  Coronas,  Assistant  Director, 
Weather  Bureau  ;  Mr.  W.  L.  Gorton,  Chief  of  the  Irrigation 
Division,  Bureau  of  Public  Works.     In  addition  I  have  had 


^^^rt  /a  OQ 


iv  ECONOMIC  CONDITIONS 

the  cooperation  of  several  persons  in  the  Bureaus  of  Educa- 
tion, Customs,  Internal  Revenue,  Science,  and  Public  Works. 
The  data  furnished  by  Mr.  Conrado  Benitez  of  the  University 
of  the  Philippines,  Mr.  Herbert  W.  Krieger,  of  the  Philippine 
School  of  Commerce,  and  others  are  also  duly  acknowledged 
in  the  proper  places. 

The  manuscript  was  reviewed  at  the  University  of  Cali- 
fornia by  Professors  David  P.  Barrows,  Carl  C.  Plehn,  and 
H.  R.  Hatfield,  and  at  The  University  of  Chicago  by  Professor 
Paul  J.  Goode. 

Books  which  were  consulted  and  from  which  extracts  are 
taken  are  mentioned  in  the  text  or  in  footnotes. 

H.H.  M. 


PREFACE  TO  THE  REVISED  EDITION 

Changes  in  the  course  of  study  have  necessitated  the  addi- 
tion of  more  commercial  geography  and  theory  of  economics 
to  this  text.  The  book  now  becomes  an  outline  for  the  entire 
course  in  commercial  geography  and  economics  in  the  fourth 
year  of  the  high  school. 

Economic  facts  as  they  relate  to  conditions  in  the  Philip- 
pines are  presented  rather  fully  in  the  text.  The  material 
in  commercial  geography  and  economic  theory  is  especially 
emphasized  in  the  suggestions  for  review  and  original  work 
by  references  to  original  sources  and  to  textbooks. 

It  is  generally  recognized  that  in  an  elementary  high-school 
course  in  economics  the  maximum  of  facts  and  the  minimum 
of  theory  is  desirable.  Nevertheless,  theory  is  the  course  of 
least  resistance  for  both  teacher  and  pupils.  Facts  are  hard 
to  find,  difficult  to  apply,  and  less  susceptible  to  discussion 
than  theory.  The  author  hopes  that  the  suggestions  at  the 
end  of  each  chapter  will  be  sufficient  to  point  the  way,  and 
that  the  teacher  will  use  his  own  initiative  in  having  them 
applied  to  local  conditions.  One  good  original  report  by  the 
pupil  is,  in  the  opinion  of  the  author,  far  more  profitable 
than  the  discussion  of  unapplied  theory.  A  well-directed 
discussion  of  an  economic  condition  of  fundamental  insular 
or  local  importance  will  result  in  a  better  grasp  of  the  sub- 
ject of  economics  than  the  elaboration  of  intangible  theory. 
The  theory  should  be  applied,  else  the  subject  will  soar  far 
above  the  heads  of  the  pupils,  and  the  objects  of  the  course 
will  not  have  been  attained. 


vi  ECONOMIC  CONDITIONS 

The  book  has  been  revised  in  this  spirit  and  with  the 
hope  that  the  course  can  everywhere  be  made  a  live  and 
interesting  one. 

Facts  have  been  brought  down  to  the  year  1919,  which 
date  probably  marks  a  new  phase  in  the  economic  develop- 
ment of  the  Philippines. 

For  assistance  in  the  preparation  of  this  edition  I  am 
especially  indebted  to  Mr.  John  W.  Osborn,  Chief  of  the 
Academic  Division,  Bureau  of  Education ;  Dr.  Stanton  Young- 
berg,  Chief  Veterinarian,  Mr.  Don  D.  Strong,  Chief  of  the 
Fiber  Division,  Mr.  Silverio  Apostol,  Chief  of  the  Plant 
Industry  Division,  and  Mr.  Antonio  Peiia,  Chief  of  the 
Statistical  Division,  Bureau  of  Agriculture ;  Mr.  Francis  B. 
Mahoney,  Chief  of  the  Commercial  Intelligence  Division, 
Bureau  of  Commerce  and  Industry ;  the  Directors  of  the 
Bureau  of  Labor  and  of  the  Bureau  of  Commerce  and  Industry 
for  typed  copies  of  their  reports ;  the  Director  of  the  Census 
of  1918;  Professor  Kenneth  Duncan  and  Professor  C.  F. 
Remer  of  the  Departments  of  Economics  in  Canton  Christian 
College  and  Saint  John's  University,  Shanghai,  respectively. 

H.  H.  M. 


FOREWORD  TO  THE  FIRST  EDITION 

In  accordance  with  the  present  purpose  of  the  Bureau  of 
Education  to  adapt  its  instruction  as  closely  as  possible  to 
the  life  needs  of  the  people  of  the  Philippines,  a  course  has 
been  introduced  into  the  high-school  curriculum  embodying 
a  half  year  of  physical  geography,  a  half  year  of  commercial 
geography,  and  a  full  year's  study  of  economic  conditions  in 
the  Philippines. 

This  book  is  to  serve  as  the  text  in  the  subject  of  economic 
conditions  in  the  Philippines  in  the  fourth  year  of  the  secondary 
course.  It  is  not  a  theoretical  treatise  on  economics  ;  it  rather 
represents  a  study  of  everyday  facts  with  which  all  young 
men  have  to  do  who  are  engaged  in  any  useful  occupation 
in  this  country.  In  the  last  year  of  his  school  work,  instead, 
of  devoting  himself  to  purely  academic  studies,  the  pupil 
assimilates  a  body  of  information  which  tends  to  lead  him 
into  intelligent  and  useful  citizenship.  This  is  one  of  the 
richest  and  most  interesting  fields  of  investigation  open  to 
the  Filipino  student ;  it  is  a  new  field ;  it  has  never  been 
covered  heretofore  in  any  adequate  way,  though  all  the  facts 
involved  have  a  direct  bearing  on  the  industrial  and  social 
welfare  of  the  Filipino  people. 

The  preparation  of  this  book  has  involved  many  months' 
work  by  a  large  number  of  well-qualified  persons.  The 
dearth  of  publications  on  the  various  subjects  considered  has 
necessitated  the  gathering  of  original  information  from  all 
parts  of  the  Islands,  and  on  this  task  approximately  one 
hundred  and  twenty  American  and  Filipino  teachers  have  been 
employed.  Under  date  of  March  1,  1912,  an  outline  prepared 

vii 


viii  ECONOMIC  CONDITIONS 

by  Mr.  Hugo  H.  Miller  was  sent  out  by  the  Director  of 
Education  to  these  collaborators  throughout  the  Islands. 
The  outline  took  up  in  detail  various  subjects  treated  in  this 
book,  and  by  questions  and  sugg^estions  presented  a  plan  for 
a  report  on  the  economic  conditions  found  in  each  district. 
Selected  supervising  teachers  and  special  high-school  teachers 
were  engaged  on  this  work.  The  nature  of  their  ordinary 
duties  is  such  that  these  persons  must  have  a  thorough 
understanding  of  the  social  and  economic  complexions  of  the 
communities  in  which  they  are  working ;  they  are  better 
fitted  than  any  other  class  of  persons  to  furnish  information 
of  this  character.  The  reports  submitted  are  voluminous 
and  in  most  cases  exhaustive  and  accurate. 

In  the  writing  of  this  textbook  Mr.  Miller  has  had  at  his 
disposition  all  the  data  accumulated  by  the  Bureau  of  Edu- 
cation in  the  working  out  of  the  program  referred  to  above. 
He  has  brought  to  this  task  a  breadth  of  view  and  a  maturity 
of  judgment  resulting  from  several  years'  study  of  these 
problems  from  the  vantage  point  of  a  supervisory  position 
in  the  industrial  department  of  the  Bureau  of  Education. 

Mr.  Charles  H.  Storms,  Instructor  in  the  Philippine  Normal 
School,  was  temporarily  assigned  to  the  General  Office  of  the 
Bureau  of  Education  to  assist  in  the  preparation  of  this  book. 
He  compiled  material  from  the  special  economic  reports,  col- 
lected and  arranged  data,  criticized  the  manuscript  and  general 
contents,  and  wrote  the  chapter  on  sugar. 

The  completed  text  is  an  original  and  valuable  treatise  on 
a  vital  subject,  and  as  the  facts  here  presented  are  digested 
by  the  many  hundreds  of  pupils  who  will  devote  themselves 
to  their  study,  the  book  may  well  prove  to  be  one  of  the 
effective  agencies  in  the  material  upbuilding  of  the  Philippines. 

FRANK  R.  WHITE 
Director  of  Education 


REFERENCES 

Required  Supplementary  Text : 

Bullock's  "Elements  of  Economics." 
Required  Reference  Texts,  of  which  several  copies  should  be  available 
in  the  library : 

Miller's  "  Commercial  Geography,"  "  The  Materials  for  Commerce  for 
the  Philippines." 

Toothaker's  "  Commercial  Raw  Materials." 

Brigham's  "  Commercial  Geography  "  (edition  of  1918). 

Finch  and  Baker's  '*  Geography  of  the  World's  Agriculture  "  (Depart- 
ment of  Agriculture,  Washington,  D.  C,  1917). 

Bishop  and  Keller's  "  Industry  and  Trade." 

Miller  and  Polley's  "  Intermediate  Geography." 
Additional  References : 

Statistics  on  principal  crops  of  the  Philippine  Islands  (issued  annually 
in  photographic  form  by  the  Bureau  of  Agriculture  and  obtainable 
on  request  through  the  proper  channels). 

Statistical  Abstract  of  the  United  States. 

The  Philippine  census  of  1903  and  the  census  of  1918. 

The  World  Almanac. 

Annual  Report  of  the  Director  of  Agriculture. 

Annual  Report  of  the  Director  of  Education. 

Annual  Report  of  the  Director  of  Health. 

Annual  Report  of  the  Insular  Collector  of  Customs. 

Annual  Report  of  the  Director  of  Public  Works. 

Annual  Report  of  the  Director  of  Forestry. 

Annual  Report  of  the  Collector  of  Internal  Revenue. 

Annual  Report  of  the  Director,  Bureau  of  Labor. 

Annual  Report  of  the  Director,  Bureau  of  Science. 

Annual  Report  of  the  Director,  Bureau  of  Commerce  and  Industry. 

The  Philippine  Agricultural  Review. 

Publications  of  the  Bureau  of  Science. 

Publications  of  the  Manila  Merchants*  Association. 

Bulletins  of  the  Bureau  of  Commerce  and  Industry. 

The  Manila  newspapers. 


CONTENTS 


PART  I.    INTRODUCTION 
Chapter  page 

I.    Primitivk  and  Civilized  Teoplks 1 


PART  II.   AGRICULTURE. 

11.   Rice  as  a  Food  Crop 25 

III.  Corn  as  a  Food  Crop 64 

IV.  Lesser  Food  Crops 74 

V.  Abaca  as  an  Export  Crop 84 

VI.    Copra  and  Coconut  Oil  as  Export  Crops  ....  107 

VII.    Sugar  as  an  Export  Crop 126 

VIII.    Tobacco  as  an  Export  Crop 150 

IX.    Minor  and  Possible  Export  Crops 164 

X.    Location  and  Character  of  Agriculture      .     .     .  178 

XI.    Development  in  Agriculture 187 

Xn.    Land  Tenure 220 

XIII.  Agricultural  Labor 275 

PART  IIL   INDUSTRIES  OTHER  THAN  AGRICULTURE 

XIV.  The  Animal  Industry 323 

XV.   Fishing 339 

XVI.   Forestry 347 

XVIL    Manufacturing 359 

XVIIL   Exchange 392 

XIX.    Summary 441 

APPENDIXES 455 

INDEX 473 

xi 


ECONOMIC  CONDITIONS  IN 
THE  PHILIPPINES 

PART  I.    INTRODUCTION 

CHAPTER  I 
PKIMITIVE  AND  CIVILIZED  PEOPLES 

Approximately  seven  eighths  of  the  population  of  the 
Philippines  belong  to  a  civilized  people  known  as  the  Fili- 
pinos. It  is  with  them  that  this  book  primarily  deals. ^  How- 
ever, the  primitive  and  semicivilized  tribes,  which  make  up 
tlie  other  eighth,  offer  excellent  examples  of  various  stages  of 
economic  advancement  from  one  of  the  lowest  known  condi- 
tions of  the  human  race  up  to  the  present  plane  achieved  by 
the  Filipinos.  It  is  therefore  proper  to  begin  a  study  of  eco- 
nomic conditions  in  the  Philippines  with  a  short  discussion 
of  certain  typical  •  primitive  and  semicivilized  tribes.  The 
economic  systems  and  ideas  of  these  tribes  are  so  simple  as  to 
be  readily  understood,  and  a  study  of  them  prepares  the  way 
for  a  comprehension  of  more  complicated  systems  and  ideas  of 
civilization.  Moreover,  the  trading  operations  of  these  tribes 
with  the  Filipinos  are  of  considerable  commercial  importance. 

1  The  names  by  which  various  groups,  tribes,  and  divisions  of  peoples  in 
the  Philippines  are  designated  are  very  loosely  used.  Strictly  speaking,  the 
term  "Filipino"  applies  to  all  Malayan  natives  of  the  Philippine  Islands. 
Popular  usage,  however,  tends  to  limit  the  term  to  the  eight  Christian  peoples, 
and  within  the  covers  of  this  book  that  usage  will  be  followed.  By  the  term 
"  Filipinos,"  as  used  here  is  meant  civilized  Christian  Malayan  natives  of 
the  Philippine  Islands. 

1 


r^;:  ECONOMIC  CONDITIONS 

The  Negritos 

The  most  primitive  people  of  the  PhiUppines  are  the  Ne- 
gritos.1  Most  of  them  are  found  in  the  hills  and  mountains  of 
several  of  the  larger  islands  and  on  a  few  of  the  smaller  ones. 
They  probably  do  not  exceed  thirty  thousand  in  nuitiber. 
These  people  belong  to  the  black  race.  They  have  a  dark 
skin,  kinky  hair,  thick  lips,  and  flat  nose.  They  seldom  exceed 
five  feet  in  height,  and  are  usually  under  that  measurement. 
They  live  in  groups  varying  from  one  family  to  several  scores 
of  persons.  In  most  instances  contact  with  more  advanced 
peoples  has  changed  their  original  mode  of  living,  but  many 
of  them  still  follow  the  primitive  existence  which  has  been 
theirs  for  centuries. 

The  chief  and  almost  sole  aim  of  the  Negritos  is  food. 
Their  method  of  obtaining  it  is  such  that  they  keep  only  a 
small  supply  or  none  at  all.  They  make  small  plantings  of 
camotes,  corn,  and  squash,  but  beyond  this  they  usually  have 
no  idea  of  providing  for  the  future  needs  of  their  stomachs, 
feeling  that  they  can  find  food  when  necessity  demands.  The 
most  primitive  Negritos  depend  principally  on  the  chase  as 
the  chief  means  of  securing  food,  and  to  a  less  extent  on  fresh- 
water fishing.  The  men  are  the  hunters.  Their  implements 
are  bows  and  arrows,  spears,  blowguns,  traps,  nets,  and 
bolos.  They  are  assisted  in  the  hunt  by  dogs,  their  only 
domestic  animal.  The  women  sometimes  take  the  place  of 
the  dogs  in  rousing  the  quarry.  When  they  kill  a  deer,  they 
make  a  definite  division  of  the  carcass.  The  man  who  first 
wounded  the  animal  receives  the  head  and  breast ;  the  back- 
bone is  given  to  the  man  who  discharged  the  fatal  shaft; 
one  hind  quarter  is  given  to  the  owner  of  the  dogs  that 
roused  the  deer;  and  the  remainder  is  divided  among  the 
other  hunters.  If  a  family  kill  a  deer  or  a  boar,  "  they  halt 
at  the  spot  where  the  animal  has  fallen,  scoop  a  hole  in  the 

1  See  "The  Negritos  of  Zambales,"  by  William  Allen  Reed,  Bureau  of 
Science,  Manila. 


PRIMITIVE  AND  CIVILIZED  PEOPLES  3 

ground,  place  the  animal  in  it,  and  build  a  fire.  Each  of 
them  takes  the  piece  of  the  animal  that  suits  his  taste  best, 
and  roasts  it  at  the  fire.  They  go  on  eating  until  they  have 
filled  their  bellies;  and  when  thus  satiated,  they  sleep.  .  .  . 
When  they  awake,  they  go  through  the  same  operation,  and 
so  on  until  all  the  meat  is  devoured ;  then  they  set  out  on 
the  hunt  again."  ^ 

While  the  meat  thus  obtained  in  the  chase  is  the  chief 
food  of  most  Negritos,  they  have  vegetable  food  also.  Much 
of  this  is  found  in  the  forest  in  the  form  of  roots.  A  small 
amount  is  obtained  through  cultivation  in  kaingin.^  The 
ground  is  rouglily  cleared,  and  rice,  corn,  squash,  and  sweet 
potatoes  are  i)lanted.  Among  the  most  primitive  people  a  few 
rude  shelters  are  erected  near  this  clearing  while  the  crop 
matures ;  but  such  settlements  are  not  permanent,  and  when 
once  the  food  from  the  kaingin  has  been  consumed,  they  wan- 
der off.  Indeed,  it  sometimes  happens  (as  in  case  of  death) 
that  they  leave  before  the  crop  matures.  Hunting,  as  we  have 
seen^  is  the  province  of  tlie  men.  They  also  assist  in  planting ; 
but  cultivation  is  left  almost  entirely  to  the  women  and  chil- 
dren. The  implements  used  in  agriculture  are  sharp-pointed 
sticks,  with  which  holes  are  made  for  the  seeds.  Bolos  are 
also  employed  for  various  purposes. 

The  clothing  of  the  Negritos  is  very  simple.  The  most 
primitive  form  is  made  from  beaten  bark.  The  men  wear  a 
breechcloth.  The  women  sometimes  use  this  garment,  but 
generally  wear  a  short  skirt. 

The  Negritos  have  simple  implements  to  help  them  in 
procuring  and  preparing  food.  They  use  pointed  sticks 
for  agriculture,  and  make  arrows,  blowguns,  and  nets  for 
the  chase.  They  obtain  fire  with  the  flint  and  steel,  or  by 
rubbing  together  two  pieces  of  bamboo.    They  cook  in  green 

1  See  Buecher's  ''Industrial  Evolution,"  p.  9.  This  is  a  quotation  from 
A.  Schadenberg  in  the  Ztsclir.  f.  Ethnologie,  XII  (1880),  143-144.  Probably 
no  Negritos  now  exist  who  do  not  cultivate  crops  in  kaingin. 

2  Temporary  clearings. 


4  ECONOMIC  CONDITIONS 

bamboo  tubes  or  in  pots  obtained  by  trade.  They  have  bamboo 
combs  and  seed  necklaces  for  ornament,  and  bamboo  musical 
instruments  for  enjoyment. 

Migrating  as  they  do  from  place  to  place,  the  most  primi- 
tive Negritos  accumulate  but  few  articles.  Bows  and  arrows, 
blowguns,  traps,  nets,  and  dogs  they  take  with  them.  The 
meat  of  wild  animals,  the  wild  roots,  and  the  product  of  their 
clearings  they  must  consume  on  the  spot.   Permanent  results 


A  NEGRITO  SHELTER 


of  labor  which  cannot  be  easily  transported,  such  as  substan- 
tial houses,  coconut  palms,  and  fruit  trees,  are  of  no  interest 
to  the  Negritos.  In  addition  to  providing  themselves  with 
the  simple  forms  of  food  and  rough  implements  and  ornaments, 
many  groups  of  them  have  been  able  to  acquire  articles  of  iron 
and  steel  (bolos  and  spears).  The  cotton  cloth  which  they 
use  is  obtained  from  the  lowlanders,  in  exchange  for  forest 
products.  The  life  of  the  Negritos  may  be  summed  up  as  one 
continuous  search  for  food. 


PRIMITIVE  AND  CIVILIZED  PEOPLES  5 

The   Subanuns 

The  Subanuiis  are  a  pagan  Malayan  tribe  of  the  Zamboanga 
Peninsula  in  Mindanao.^  As  with  the  Negritos,  but  to  a  less 
degree,  the  chief  aim  in  life  of  the  Subanuns  is  food.  Unlike 
the  Negritos,  however,  they  ordinarily  secure  their  food 
through  agriculture,  and  only  resort  to  forest  products  when 
their  crops  fail.  They  follow  the  kaingin  system.  In  the 
clearings  they  plant  rice,  sweet  potatoes,  corn,  millet,  yams, 


PLANTING  RICE  IN  A  KAINGIN 


tobacco,  vegetables,  bananas,  papayas,  and  betel  vines.  The 
Subanuns  are  not  naturally  of  a  roving  disposition,  but  their 
implements  of  agriculture  are  not  such  as  to  enable  them  to 
cultivate  the  same  clearings  year  after  year.  As  soon  as  the 
ground  hardens  and  the  cogon  grass  obtains  a  foothold,  their 
pointed  sticks  are  useless,  and  they  find  it  easier  to  aban- 
don their  fields  and  clear  others.  This  does  not  mean  that  they 
leave  the  locality  immediately.    So  long  as  there  is  new  forest 

1  "  The  Subanuns  of  Sindangan  Bay,"  by  Emerson  B.  Christie,  Bureau  of 
Science,  Manila. 


6  ECONOMIC  CONDITIONS 

suitable  for  clearing,  they  remain.  But  feeling  the  ultimate 
necessity  of  leaving,  they  do  not  plant  long-time  crops,  such 
as  coconut  palms,  areca  palms,  and  the  like  (although  they 
greatly  enjoy  the  products  of  these),  nor  do  they  build  houses 
of  a  substantial  character.  A  Subanun  family  seldom  remains 
in  the  same  spot  for  more  than  ten  years ;  the  time  is  usually 
much  shorter. 

In  clearing  the  ground  different  families  of  the  commu- 
nity cooperate.  In  cultivating  the  clearing  the  men  of  the 
family  to  which  the  land  belongs  make  holes  with  sharp- 
ened sticks,  and  the  women  and  children  follow,  planting 
the  seeds.  Weeding  is  done  twice,  but  the  crops  receive  little 
cultivation. 

Although  the  Subanuns  do  but  little  hunting  and  fishing, 
they  have  a  supply  of  meat  in  the  two  domestic  animals,  the 
pig  and  the  chicken.  They  understand  the  fermentation  of 
rice,  and  make  a  rice  beer. 

The  clothing  of  the  Subanuns  is  made  from  cotton  and 
abaca  ^  cloths.  The  men  wear  trousers  and  shirts,  the  women 
waists  and  skirts.  Turbans  are  worn  by  both  sexes.  For 
ornament  they  wear  silver  trinkets,  beads,  earrings,  necklaces 
of  dried  seeds,  brass  anklets  and  armlets,  wristlets  made  of 
shells  and  silver,  rings  and  earrings  of  wood,  coconut  shells, 
seashells,  horn,  and  brass,  as  well  as  bamboo  combs,  many  of 
these  being  obtained  by  trade. 

For  shelter  the  Subanuns  build  houses  of  one  room,  on 
wooden  supports.  They  make  the  floor  of  split  bamboo,  palm, 
or  wood,  and  the  rest  of  the  house  of  bamboo  and  light  mate- 
rials, such  as  the  leaves  of  nipa,  buri,  sago,  and  other  palms. 
The  space  beneath  the  floor  they  give  to  the  pigs  and  the 
chickens.  In  the  houses  they  have  mats  of  pandan  or  palm 
leaves.  Their  bedding  consists  of  a  few  strips  of  cotton  cloth. 
They  also  have  baskets  for  storing  food,  pottery  obtained  by 
trade,  brass  gongs,  and  Chinese  jars  secured  through  barter 
with  the  Moros. 

^  Musa  textilis,  Manila  hemp. 


PRIMITIVE  AND  CIVILIZED  PEOPLES  7 

The  Subanuns  build  rice  granaries,  which  consist  of  large 
baskets  erected  on  a  platform  and  protected  by  a  roof.  In  this 
way  they  store  food  to  meet  the  future  needs  of  their  stomachs, 
and  thus  they  are  not  at  the  mercy  of  the  vagaries  of  nature. 

They  carry  on  manufacturing  in  a  rude  way.  Pottery  is 
made  by  women.  The  clay  is  formed  by  means  of  a  stone, 
a  stick,  and  the  hand.    The  pot  is  first  baked  in  the  sun  and 


A  PRIMITIVE  SMITHY 


then  in  a  hot  fire.  These  crude  articles  are  often  objects  of 
trade.  Coarse  and  unornamented  baskets  are  made  of  nito,^ 
rattan,  bamboo,  and  wood.  The  garments  of  the  Subanuns 
are  made  from  cloth  of  their  own  weaving.  They  understand 
the  distaff  and  the  spinning  wheel,  but  the  cotton  which  they 
use  they  obtain  from  the  Moros,  from  whom  they  buy  cotton 
yarn  also.  The  abaca  is  a  home  product.  The  looms  are 
crude.  The  Subanuns  understand  working  in  iron.  They  use 
as  tools  bamboo  bellows,  an  anvil  (a  piece  of  iron  placed  on 

1  The  stems  of  climbing  ferns  (species  of  Lygodium). 


8  ECONOMIC  CONDITIONS 

a  block  of  wood),  and  a  hammer.  The  raw  material  they 
obtain  by  trade,  and  turn  it  into  chopping  knives  and  a  few 
weapons.  From  bamboo  and  wood  they  make  musical  instru- 
ments, rings,  and  combs.  Palm  and  pandan  leaves  they  weave 
into  mats. 

The  Subanuns  have  been  elevated  to  a  higher  plane  of  civi- 
lization by  barter  with  the  Moros,  who  are  much  more 
advanced.  The  Subanuns  barter  mountain  rice,  wax,  resins, 
and  rattan  for  cotton  fiber,  yarn,  and  cloth ;  for  weapons  ;  for 
brass  boxes,  jars,  trays,  gongs,  and  ornaments  of  various 
kinds;  and  for  Chinese  jars.  The  Moro  traders  arrive  in 
boats.  The  Subanuns  come  down  from  the  hills,  bringing 
their  products  on  their  backs,  since  they  have  no  beasts  of 
burden,  vehicles,  or  boats.  Sometimes,  however,  they  use  rafts 
on  the  river.  In  their  transactions  the  Subanuns  are  often 
badly  cheated  by  the  Moros. 

The  articles  with  which  the  Negritos  are  familiar  are  few, 
but  those  found  among  the  Subanuns  are  much  more  numer- 
ous. Of  daily  use  among  the  Subanuns  are  houses  and  food 
(rice,  sweet  potatoes,  garden  vegetables,  wild  and  domestic 
meats,  fish,  and  the  like),  clothing  of  coarse  cotton  and  abaca 
cloths,  crude  baskets,  and  bolos.  The  implements  used  in 
production  consist  of  pointed  sticks,  bolos,  and  knives,  and 
the  apparatus  for  ironwork  and  for  spinning  and  weaving. 
The  products  saved  for  future  use  are  chickens,  pigs,  rice 
stored  in  granaries,  and  corn  stored  in  baskets.  All  these 
articles  may  properly  be  called  necessities,  for,  directly  or 
indirectly,  they  all  sustain  life  or  shelter  the  body.  Besides 
these  the  Subanuns  possess  articles  which  are  in  no  way  related 
to  their  physical  comfort,  but  which  are  kept  for  ostentation 
and  future  needs.  Such  are  the  personal  ornaments  of  silver, 
brass,  shell,  and  bamboo,  the  brass  gongs,  and  the  large  Chinese 
jars.  Although  these  do  not  protect  or  sustain  the  body,  yet 
they  can  be  exchanged  for  wives,  food,  clothing,  or  shelter. 
In  particular  are  the  Chinese  jars  much  esteemed,  for  these 
^re  beautiful  and  useful,  and  limited  in  number. 


PRIMITIVE  AND  CIVILIZED  PEOPLES  9 

In  tlie  following  points  the  Subanuns  have  surpassed  the 
Negritos  :  (1)  in  obtaining  a  more  permanent  residence,  which 
would  become  fixed  if  their  rude  cultivation  could  overcome 
the  hardening  of  the  soil  and  the  weeds ;  (2)  in  securing 
improved  methods  of  obtaining  foods,  and  an  increase  in 
quality  and  variety ;  (3)  in  storing  up  food  for  the  future ; 
(4)  in  the  rude  beginnings  of  pottery,  metal  work,  and  weav- 
ing; and  (5)  in  the  articles  of  art  kept  for  ostentation  and 
for  future  needs. 

The  life  of  the  Subanuns  may  be  characterized  as  one  in 
which  agriculture  normally  gives  a  sufficient  supply  of  food 
and  a  surplus.  The  surplus  is  stored  against  future  want, 
or  exchanged  for  articles  of  value. 

The  Mountain  Peoples 

The  Igorots,  Bontoks,  and  Tfugaos  ^  belong  to  the  most 
advanced  of  all  the  Malayan  pagan  tribes.  They  live  in  the 
Caraballa  Mountains,  where  the  narrow  flood  plains  and  the 
steep  hillsides  offer  but  little  fertile  and  arable  land.  Yet 
of  their  various  forms  of  production  these  people  are  most 
advanced  in  agriculture,  a  condition  which  has  probably  been 
brought  about  by  their  restricted  supply  of  wild  foods.  They 
clear  the  steep  hillsides  of  pine  trees,  turn  the  soil  with  sharp 
sticks,  and  plant  sweet  potatoes,  millet,  or  beans.  Such  fields 
are  most  often  entirely  dependent  on  the  rainfall  for  moisture, 
and  are  usually  abandoned  after  a  few  years'  use.  For  their 
supply  of  rice  these  people  rely  on  land  made  by  building 
terraces  on  the  steep  hillsides  and  filling  these  with  gravel, 
sand,  clay,  and  soil.  This  land  is  usually  kept  from  being 
washed  down  the  hillside  by  a  thick  retaining  wall  built  of 

1  This  discussion  is  based  on  "The  Bontoc  Igorot,"  by  A.  E.  Jenks, 
Bureau  of  Science,  Manila,  the  economic  report  submitted  for  If ugao  by  Roy 
F.  Barton,  and  verbal  information  given  by  H.  Otley  Beyer,  Bureau  of  Sci- 
ence. The  Ifugaos  and  Bontoks  live  in  subprovinces  of  the  same  names ; 
the  Igorots  live  in  the  subprovinces  of  Benguet,  Lepanto,  and  Amburayan. 
Formerly  the  name  Igorot  was  applied  to  all  these  tribes. 


10  ECONOMIC  CONDITIONS 

stone.  Such  walls  are  from  fifty  centimeters  to  ten  meters 
in  height;  in  many  communities  they  amount  to  thousands 
of  linear  kilometers.^  The  human  labor  expended  on  these 
terraces  is  enormous.  In  places  whole  mountain  sides  are 
covered  with  terraces  which  contain  thousands  of  hectares, 
being  the  results  of  generations  of  toil. 

In  these  fields  several  methods  of  irrigation  are  employed. 
Sometimes  there  are  canals  fed  by  springs.  Sometimes  rivers 
are  diverted  into  canals  by  means  of  dams  and  weirs.  Thus 
the  water  is  brought  to  the  terraces,  and  flows  from  plot  to 
plot,  over  the  whole  mountain  side.  This  work  is  done  by 
communal  labor,  and  the  water  is  divided  among  those  who 
build  the  system.  For  small  patches,  where  a  flow  is  not 
obtainable,  water  is  lifted  from  rivers  by  sweeps,  or  is  carried 
in  jars. 

The  implements  of  tillage  employed  by  the  Igorots  and 
Bontoks  are  sharpened  sticks ;  the  Ifugaos  use  crude  wooden 
spades.  These  are  effective  in  ground  soaked  and  softened 
with  water,  and  the  soil  is  thoroughly  broken  up.  The  soil 
is  then  puddled  with  the  feet.  These  people  understand  the 
use  of  fertilizers  also,  and  add  pig  manure,  ashes,  grass,  and 
sweet-potato  vines  to  prevent  impoverishment  of  the  soil. 
Every  two  years  they  add  new  soil.  The  grain  is  sown  thick 
in  a  small  seed  bed ;  after  it  has  sprouted,  it  is  transplanted 
into  the  terraces.  The  cultivation  of  the  fields  is  done  care- 
fully. Women  and  children  pull  the  weeds,  and  thin  out  the 
plants.  Old  women  and  children  protect  the  crops  during  the 
day;  at  night  fires  are  built  to  scare  away  wild  hogs.  The 
Bontoks  and  Igorots  make  scarecrows,  consisting  of  bunches 
of  leaves,  figures  of  large  birds,  and  the  like.  These  are  hung 
on  poles,  and  are  often  kept  in  motion  by  systems  of  strings 
attached  to  floats  in  a  rapidly  moving  current. 

In  the  rice  harvest  four  or  five  cutters  reap  the  grain  and 
place  it  in  bundles  for  one  woman  to  bind  and  carry  to  the 
transportation  baskets. 

1  In  Ifugao  there  are  more  than  19,000  kilometers  of  eight-meter  wall. 


A  Kaingin 


Rice  Terraces 
ADVANCE  IN  AGRICULTURE 


12  ECONOMIC  CONDITIONS 

• 

Rotation  of  crops  is  practiced,  but  not  for  the  purpose  of  in- 
creasing fertility  or  retarding  the  exhaustion  of  the  soil ;  it  is 
rather  to  make  constant  use  of  the  land.  The  best  example  of 
this  is  the  planting  of  sweet  potatoes  in  the  terraces  after  the 
rice  has  been  harvested. 

The  system  of  agriculture  as  a  whole  is  excellent,  and  such 
that  the  mountain  people  ^  wrest  from  their  barren  hillsides 
a  supply  of  food  more  than  sufficient  for  their  immediate  needs. 
In  the  villages  there  are  granaries,  built  of  heavy  pine  planks 
and  timbers,  with  thatched  roofs  extending  almost  to  the 
ground.  Here  the  rice  is  stored.  Corn  and  millet  are  kept  in 
the  dwellings.  Beans  are  dried  and  stored  in  baskets.  The 
Igorots  slice,  dry,  and  store  sweet  potatoes  also. 

These  peoples  are  fairly  well  supplied  with  domestic  ani- 
mals. Horses  of  good  breed  are  raised,  and  used  for  riding 
and  packing.  Carabaos  and  cattle  are  also  raised,  but  are 
used  neither  in  agriculture  nor  m  transportation ;  their  flesh, 
however,  like  that  of  the  hog,  is  much  appreciated.  Hogs  are 
kept  in  pens;  they  are  fed  three  times  a  day,  with  sweet- 
potato  vines,  parings,  and  green  vegetable  matter,  always 
cooked.  The  refuse  of  tlie  pen  is  the  chief  fertilizer.  Besides 
these  animals  chickens  and  dogs  are  raised  about  the  house. 
The  sources  of  food  eaten  by  the  Ifugaos  have  been  calculated 
by  Roy  F.  Barton,  as  follows : 


Food  Source 


Fraction  of 
Total  Subsistence 


Agriculture  .... 
Primitive  food  getting 
Animal  culture  .  . 
Importation  .... 
Total      .... 


.84 
.094 
.042 
.024 
1.000 


The  clothing  of  the  men  consists  of  a  girdle  of  bast,  rattan, 
or  brass  links.    This  supports  a  breechcloth,  which  is  made 

1  In  this  chapter  the  term  "  mountain  people  "  refers  to  the  Igorots,  Bon- 
toks,  and  Ifugaos  as  a  whole. 


Turning  the  ,Soil 


Photo  by  Roy  F.  Barton 


likm^M^HiK 

J 

^P ^^ 

.-^  .-J 

\       mf^^^'-^mm 

^I^^HKKaBmmKxmm  ' 

1             ^•'♦P''j^  S?«i 

1                 ^^^^"^L^m^^ 

iii 

|flnMHpn9 

i4| 

1 

Planting 
RICE  CULTIVATION  IN  TERRACES 


Photo  by  Roy  F.  Barton 


14 


ECONOMIC  CONDITIONS 


of  bark  or  of  cotton  cloth  spun  by  the  women,  or  obtained  in 
trade  with  the  Ilocanos.  To  this  is  sometimes  added  a  light 
blanket,  worn  when  it  is  cold,  as  in  the  late  afternoon  or  the 
early  morning.  The  Bontoks  wear  a  small  hat  of  basketwork, 
which  is  used  more  as  a  pocket  than  as  a  protection  for  the 
head.  The  Igorots  wear  a  headband  for  the  same  purpose. 
The  women  wear  a  skirt,  a  girdle,  and  a  waist,  usually  of  cotton. 
Blankets  are  used  by  the  women  as  well  as  by  the  men. 


A]S   IGOKOT  HOUSE 


The  agriculture  of  the  mountain  peoples  is  such  that  there 
is  no  necessity  for  changing  residence.  Their  houses  are  there- 
fore much  more  comfortably  and  permanently  constructed 
than  those  of  the  Subanuns.  They  are  of  two  types :  one 
built  high  above  the  ground,  on  large  pine  timbers ;  the  other 
resting  on  the  earth.  The  sides  are  of  overlapping  pine  boards 
or  of  mud  and  stone.    The  steep-sloped  roof  is  made  of  grass. 

The  mountain  peoples  manufacture  numerous  articles. 
They  make  stone  into  hammers,  and  into  troughs  and  bowls 
for  pigs.   They  make  the  crude  agricultural  implements.   They 


PRIMITIVE  AND  CIVILIZED  PEOPLES 


15 


fashion  wooden  pails  for  the  food  of  pigs,  wooden  dishes, 
bowls,  dippers,  and  spoons  for  the  household,  and  wooden 
shields  and  spears.  They  often  carve  tobacco  pipes  out  of 
wood.  This  work  is  done  laboriously  with  knives  and  fire, 
and  the  articles  are  frequently  ornamented  with  the  figures  of 
people  or  of  animals.  The  making  of  articles  from  metal  is  con- 
fined to  a  few  persons,  for  the  reason  that  this  requires  con- 
siderable skill  and  experience.    In  the  smithies  are  produced 


PRIMITIVE  POTTERY  MAKING 

several  styles  of  spear  blades,  battle-axes,  and  bolos.  Two 
or  three  men  work  together.  One  operates  the  bellows,  an- 
other feeds  the  fire  and  does  the  heavy  striking  during  the 
initial  part  of  the  work,  and  the  third,  the  blade  maker,  directs 
the  labor  and  performs  the  finer  parts  of  the  production.  The 
iron  used  is  scrap,  obtained  from  the  lowlands.  The  metal  is 
hammered  with  a  large  stone  hammer  on  a  stone  anvil,  and 
is  tempered  in  water.  Nearly  all  Igorot  towns  make  the  clay 
and  wooden  pipes  locally  used  for  smoking  tobacco.  A  few 
men,  however,  gain  a  living  by  traveling  from  one  town  to 


16 


ECONOMIC  CONDITIONS 


another  making  pipes  of  brass.  These  men  fashion  a  model  of 
the  pipe  bowl  in  beeswax  embedded  in  a  jacket  of  clay.  When 
the  clay  is  baked,  the  wax  melts  and  is  drawn  off,  leaving  a 
clay  mold.  Into  this  the  molten  brass  is  poured.  Brass  pipes 
are  usually  fitted  with  a  stem  of  similar  metal.  Where  suit- 
able clay  is  found,  pottery  making  is  also  carried  on,  and,  as 
with  the  Subanuns,  the  work  is  left  to  the  women.  The  bowls, 
formed  with  the  hand  and  a  stick,  are  sun-baked,  then  tired, 
and  afterwards  glazed  with  resin.  Baskets,  on  the  other  hand, 


PKLMITIVE  WEAVING 

are  made  by  the  men.  These  are  produced  in  numerous  forms, 
some  for  storing  food,  some  for  winnowing,  some  for  holding 
rice.  One  of  the  most  important  kinds  of  baskets  Ls  that  used 
by  the  men  for  transportation. 

A  small  amount  of  sugar  cane  is  grown.  This  is  crushed 
in  crude  mills,  and  the  juice  is  crystallized  in  large  iron 
boilers.  It  is  often  fermented  in  tightly  covered  jars.  The 
drink  thus  made  is  known  as  basi.  Tapui,  or  bubud,  a  rice 
beer,  is  made  and  drunk  extensively.    Several  salt  springs 


PRIMITIVE  AND  CIVILIZED  PEOPLES 


17 


are  to  be  found  in  this  mountainous  region.  The  salt  from 
the  water  of  these  springs  is  allowed  to  accumulate  on  stones. 
The  salt  is  then  washed  from  the  stones,  and  the  resulting 
brine  is  evaporated. 

The  Igorots  obtain  whetstones,  flint,  and  clay  for  pottery, 
and  to. a  small  extent  mine  copper  and  gold.  From  the  forests 
they  cut  lumber  for  their  houses,  the  logs  being  reduced  to 
boards  by  means  of  axes. 

It  i§  interesting  to  note  that  in  the  raising  of  crops  and  the 
transformation  of  materials  the  work  is  divided.  The  older 
children  gather  food  for  the  pigs  and  guard  the  rice  terraces. 
The  men  cut  the  wood  and  lumber,  build  houses  and  dikes, 
construct  irrigation  dams,  and  transport  the  harvested  rice. 
They  manufacture  and  sell  basi.  They  produce  implements 
and  utensils  for  the  house.  They  weave  baskets,  and  work 
with  stone  and  metals.  The  women  are  the  spinners  and 
the  weavers  (for  some  cloth  is  made  by  these  people).  They 
also  prepare  the  seed  beds  and  set  out  the  rice  plants  in  the 
terraces.  They  plant,  cultivate,  and  harvest  sweet  potatoes, 
millet,  corn,  and  beans,  and  assist  the  men  in  transporting 
soil.  Some  are  makers  of  pottery  and  of  salt.  Both  men  and 
women  thresh  rice,  carry  water,  and  make  the  rice  drink. 
The  old  people  are  the  counselors,  and  do  the  light  work. 
They  guard  the  crops,  attend  the  children,  carry  water,  and 
cook  the  food. 


Division  of  Labor  between  Sexes  in  Ifugao^ 


Men 

Women 

Both 

Spading  fields 

Planting  rice 

Cooking 

Getting  wood 

Tending  rice 

Harvesting 

All  work  in  wood 

Weaving 

Care  of  baby 

Pot  burning 

Pot  molding 

Carrying  rice  to  granary 

Blacksmithing 

Gardening 

Camote  culture 

Rice-field  construction 

Basket  making 

1  By  Roy  F.  Barton. 


18  ECONOMIC  CONDITIONS 

Often  a  larger  number  of  persons  than  are  included  in  the 
family  are  needed  to  do  a  piece  of  work.  In  housebuilding, 
and  in  much  of  the  agricultural  work,  such  as  constructing 
a  system  of  irrigation,  several  families  group  their  labor.  The 
mountain  peoples  do  not  employ  animals  in  tilling  the  soil, 
nor  do  they  often  employ  them  in  transportation.  Goods  are 
carried  on  the  backs  of  men  and  women. 

Some  of  the  articles  manufactured  by  the  mountain  peoples 
are  not  produced  in  all  communities.  Thus,  in  Bontok,  pot- 
tery is  made  by  women  of  Samoki ;  salt  comes  from  Mainit ; 
battle-axes  and  spears  from  Baliwang  and  Balbalasan ;  clay 
tobacco  pipes  are  made  in  Agawa ;  whetstones  are  the  prod- 
uct of  Basao.  These  articles  are  disposed  of  by  men  from  the 
producing  towns,  who,  traveling  in  groups,  take  their  wares 
on  their  backs  to  other  towns  for  trade.  The  system  is  one 
of  barter ;  that  is,  the  men  exchange  their  products  for  others 
obtainable  in  the  different  localities.  Yet  in  all  these  trans- 
actions there  seems  to  be  a  growing  preference  for  the  use  of 
certain  objects  as  a  medium  of  trade.  Particularly  is  this  true 
of  manojos  (bundles  capable  of  being  grasped  in  the  hand) 
of  rice  in  head.  The  Igorots  often  pay  for  articles  with  these 
bundles.  If  they  barter  one  article  for  another,  they  often  esti- 
mate the  values  of  these  in  terms  of  manojos  of  rice.  To  a 
less  extent  pottery,  tobacco,  and  salt  are  used  in  exchange. 
More  and  more  also  the  Igorots  are  employing  silver  and 
copper  coins  and  even  paper  bills,  but  these  are  the  result 
of  a  civilization  higher  than  theirs. 

In  comparing  the  Subanuns  with  the  mountain  peoples,  as 
we  have  below,  we  readily  see  points  in  which  the  latter  have 
surpassed  the  former,  and  other  points  in  which  the  two  are 
on  the  same  plane. 

1.  Though  the  implements  of  agriculture  ^  w^hich  the  Igorots 
and  Bontoks  employ  are  the  same  as  those  of  the  Subanuns, 
the  former  have,  through  irrigation,  succeeded  in  preventing 

1  The  spades  used  by  the  If  ugaos  are  superior  to  the  pointed  stick. 


PRIMITIVE  AND  CIVILIZED  PEOPLES  19 

the  hardening  of  the  soil  and  in  keeping  out  weeds.  By  the 
use  of  fertilizers  they  have  prevented  exhaustion  of  the  soil. 
Thus,  being  able  to  use  the  same  piece  of  land  constantly, 
they  have  achieved  permanency  of  residence. 

2.  The  mountain  peoples  have  greater  variety  of  food  than 
the  Subanuns. 

3.  The  mountain  peoples  have  as  great  a  store  of  food  as 
the  Subanuns,  and  are  consequently  as  far  removed  from 
danger  of  starvation. 

4.  In  weaving  and  pottery  the  mountain  peoples  are  no 
farther  advanced  than  the  Subanuns,  but  in  woodwork  and 
metal  work  they  have  surpassed  them.  In  metal  work  they 
have  gained  division  of  labor,  since  various  operations  in  the 
process  of  making  articles  of  metal  are  carried  on  by  different 
workmen. 

5.  The  number  of  products  used  by  the  mountain  peoples 
for  ostentation  are  at  least  as  numerous  as  those  of  the  Suba- 
nuns, and  many,  such  as  the  carved  bowls  and  tobacco  pipes, 
are  of  local  origin  and  design. 

6.  The  Subanuns  have  but  the  beginnings  of  commerce; 
for  their  trade  consists  only  of  that  with  a  higher  race.  The 
Igorots,  Bontoks,  and  Ifugaos,  on  the  contrary,  have  developed 
a  system  of  exchange  among  themselves  which  is  more  impor- 
tant than  the  commerce  carried  on  with  outsiders.  This  ex- 
change results  from  a  diversity  of  production  in  the  different 
communities. 

7.  Finally,  the  mountain  peoples  have  acquired  a  very  defi- 
nite idea  of  the  value  of  their  products.  They  are  not  cheated, 
as  are  the  more  simple  Subanuns. 

The  life  of  the  mountain  peoples  may  be  briefly  described 
as  one  in  which  an  excellent,  though  still  primitive  system 
of  agriculture  provides  an  abundance  of  food  and  a  surplus 
against  the  exigencies  of  a  poor  crop,  and  allows  permanent 
residence  and  the  utilization  of  the  labor  of  a  few  men  in  the 
manufacture  of  useful  articles  and  luxuries. 


20  •     ECONOMIC  CONDITIONS 

General  Comparison  i 

Bueclier,  in  his  "  Industrial  Evolution,"  has  aptly  stated  that 
human  needs  are  capable  of  an  infinite  multiplication  and  sub- 
division ;  they  are  never  at  rest ;  they  increase  in  degree  and 
extent  with  the  progress  of  civilization.  Thus  we  have  seen 
that  the  needs  of  the  Negritos  are  little  more  than  food,  and  of 
this  barely  enough  to  keep  life  in  the  body.  After  a  people 
obtains  a  supply  of  food  above  its  actual  immediate  needs,  its 
wants  become  more  diversified ;  it  begins  to  improve  its 
methods  of  production,  to  increase  the  variety  of  its  diet,  to 
make  better  shelter  and  clothing,  and  to  develop  taste  for  art 
and  for  display.  In  short,  its  wealth  increases  not  only  in 
amount  but  in  kind.^ 

1  In  the  consideration  of  these  three  groups  of  peoples  the  subjects  touched 
on  have  been  the  products  they  use  for  food,  clothing,  shelter,  and  amuse- 
ment, how  these  products  are  obtained  and  exchanged,  and  in  what  manner 
they  are  divided  among  the  people  ;  that  is,  the  discussion  has  been  about 
those  things  which  minister  to  the  physical  needs  of  man  and  help  him  to 
live.   Anything  which  helps  man  to  live  is  called  wealth. 

2  Certain  forms  of  wealth  which  the  Subanuns  possess  would  not  be  con- 
sidered wealth  by  the  Negritos.  For  instance,  the  Chinese  jars,  which  are 
with  the  Subanuns  the  most  prized  of  all  possessions,  would  not  be  valued 
by  the  Negritos.  In  the  same  way  the  irrigation  systems  and  the  fertilizers 
employed  by  the  Igorots  would  be  useless  to  the  Subanuns,  who  consequently 
would  not  consider  them  wealth.  Likewise  a  plow  or  the  services  of  a  tailor 
would  not  be  considered  wealth  by  an  Ifugao.  Thus  it  can  be  seen  that 
objects  or  services  which  may  be  classed  as  wealth  by  one  group  of  individ- 
uals may  not  be  considered  wealth  by  another. 

We  should  observe  another  peculiarity  concerning  those  things  which  help 
man  to  live.  "  Some  things  are  said  to  be  valuable,  as  in  the  case  of  a  gold 
watch  or  diamond  ring,  because  in  exchange  for  them  we  can  get  a  great 
quantity  of  other  articles.  Ashes  are  of  little  or  no  value  because  we  cannot 
get  anything  in  exchange  for  them.  Now  this  word  '  value '  is  a  very  difficult 
one  and  is  employed  to  mean  different  things.  We  may  say  that  quinine  is 
valuable  for  curing  fevers,  that  iron  is  valuable  for  the  blood,  or  that  water 
is  valuable  for  putting  out  fires.  Here  we  do  not  mean  valuable  in  exchange, 
for  quinine  would  cure  fevers  just  as  well  if  it  cost  a  penny  an  ounce  instead 
of  some  ten  shillings;  Water,  if  we  can  get  it  at  the  right  time,  puts  out  a 
fire  whether  it  costs  much  or  little  or  nothing"  ("Political  Economy,"  by 
W.  Stanley  Jevons).  It  is  clear,  then,  that  by  value  we  may  mean  value  in 
exchange  or  value  in  use,  or  both,  and  a  thing  which  may  have  little  value  in 
exchange  may  have  great  value  in  use.   Thus  the  value  of  air  is  the  utility 


PRIMITIVE  AND  CIVILIZED  PEOPLES  21 

Not  only  does  man  come  to  possess  a  greater  amount  and 
variety  of  wealth  as  he  becomes  more  civilized,  ^  but  he  is  less 
and  less  dependent  on  nature,  and  more  and  more  dependent 
on  his  fellow  man.  The  lowest  form  of  human  being  that 
can  be  imagined  is  one  whose  only  activity  is  the  procuring 
of  food,  and  who  wanders  about  alone,  living  on  worms,  slugs, 
roots,  twigs,  and  such  nourishment  as  he  can  obtam  wfthout 
the  assistance  of  any  kind  of  implement.  Such  a  human  being 
is  not  known  to  exist.  All  men  so  far  encountered  live  in 
groups,  understand  fire,  and  possess  certain  implements  which 
assist  them  in  obtaining  their  living.  The  search  for  the 
necessities  of  life  and  the  desire  to  obtain  them  with  the  least 
effort  have  caused  such  groups  to  evolve  systems  by  which 
these  necessities  (wealth)  are  produced,  exchanged,  distributed, 
and  consumed.  The  more  complicated  the  system,  the  greater 
the  wealth,  and  the  greater  the  surplus  over  the  bare  necessities 
of  existence. 

Greater  complication  of  the  economic  system  with  advance 
in  civilization  is  well  illustrated  in  the  tribes  under  discussion. 

Of  the  most  lowly  of  known  human  beings  the  Negritos 
are  a  good  example;  but  even  among  these  people  we  see 
the  beginnings  of  a  system.  There  is  a  division  of  labor 
between  the  sexes ;  in  general,  the  men  do  the  hunting,  and 
the  women  gather  or  grow  the  vegetable  foods.  There  is 
also  some  idea  of  division  of  wealth  among. them,  as  shown 
in  the  distribution  of  the  carcass  of  an  animal  killed  in 
the  chase. 

of  the  air  we  breathe  ;  the  value  of  water  is  the  utility  of  the  water  we  drink 
or  use  in  washing  or  cooking  ;  but,  although  this  utility  is  great,  neither  air 
nor  water  can  be  exchanged  for  other  articles.  Hence  the  definition  of 
wealth  previously  given  must,  from  an  economic  standpoint,  be  qualified  to 
exclude  those  things  which  have  no  value  in  exchange.  Wealth  consists  of  those 
things  which  help  man  to  live,  and  which  have  value  in  exchange.  Economics  is 
the  study  of  wealth. 

1  The  term  ''  civilization  "  is  complex.  It  is  usually  interpreted  to  include 
government,  literature,  art,  and  morals,  as  well  as  food,  clothing,  shelter, 
amusements,  and  the  like.  Within  the  scope  of  this  book,  however,  the  term 
refers  only  to  the  material  or  economic  advance. 


22  ECONOMIC  CONDITIONS 

The  Negritos  are  in  the  stage  of  primitive  group  economy} 
in  which  production  is  solely  for  the  group's  needs,  and  in 
which  goods  are  consumed  where  they  are  produced.  On  the 
other  hand,  the  Subanuns  are  on  the  verge  of,  and  the  Bon- 
tok  Igorots  and  Ifugaos  are  just  entering,  the  stage  of  primitive 
town  economy^  the  stage  of  direct  exchange,  where  goods  pass 
directly  from  the  producer  to  the  consumer.  The  Subanuns 
are  much  more  independent  of  nature  than  are  the  Negritos, 
since  they  have  a  surplus  supply  of  food.  The  mountain 
peoples  are  still  more  independent  on  account  of  their  irriga- 
tion system  and  their  use  of  fertilizers.  But  their  system  of 
producing  wealth,  and  of  exchanging  and  distributing  it,  is, 
as  a  result,  more  complicated.  There  is  greater  division  of 
labor  between  the  sexes ;  artisans  such  as  the  blacksmith  and 
the  pipe  maker  have  emerged  to  spend  their  entire  time  in 
producing  one  kind  of  article. 

Thus  we  see  an  advance  from  a  system  in  which  the  indi- 
vidual obtains  his  own  food  to  a  system  in  which  certain 
persons  do  not  produce  food,  but  are  dependent  on  others  for 
their  sustenance.  They  transform  raw  material  into  finished 
products  and  exchange  them  for  food,  clothing,  and  other 
necessities.  We  see,  also,  an  advance  from  a  condition  in  which 
men  wander  from  place  to  place  to  a  condition  in  which 
they  form  towns.  A  more  advanced  stage  is  that  in  which  each 
town  produces  certain  articles.  Such  a  division  in  the  pro- 
duction of  articles  brings  into  existence  the  idea  of  exchange, 
first  between  individuals  and  then  between  localities  (towns). 
This  exchange  calls  for  men  to  take  the  goods  from  the  pro- 
ducer to  the  consumer.  From  these  men  arises  the  need  of 
a  standard  commodity  which  is  acceptable  in  exchange  for 
products,  and  by  which  relative  values  of  articles  may  be 
measured.  This  standard  commodity  is  money.  Among  the 
mountain  peoples  we  have  seen  that  bundles  of  rice  are  most 
often  used    as  money.    As   civilization   spreads,  we  observe 

1  The  stages  of  economic  development  noted  in  this  book  are  suggested 
by  Buecher's  chapter  on  '*The  Rise  of  National  Economy." 


PRIMITIVE  AND  CIVILIZED  PEOPLES  23 

changes  in  the  distribution  of  wealth.  Among  the  most  prim- 
itive peoples  there  is  little  difference  in  the  amount  of  wealth 
possessed  by  individuals.  This  condition  results  from  the 
simplicity  of  the  method  by  which  wealth  is  obtained,  and 
from  the  small  amount  of  wealth  which  exists.  Among  the 
mountain  peoples,  however,  there  are  men  who  possess  a  large 
share  of  the  surplus  productive  wealth  of  the  community, 
such  as  rice  terraces,  pigs,  and  carabaos.  Men  who  have  none 
of  these  must  work  for  the  owners,  or  starve,  or  revert  to 
more  primitive  conditions  of  living.  Hence,  to  a  large  degree, 
these  workers  are  economically  dependent  on  the  possessors  of 
productive  wealth. 

The  Filipinos 

Among  the  semicivilized  of  the  Philippines  the  mountain 
peoples  have  made  the  greatest  economic  advance.  From  them 
we  may  pass  to  the  Filipinos. 

The  system  by  which  the  Filipinos'  wealth  is  produced, 
exchanged,  distributed,  and  used  shows  they  have  reached 
the  stage  of  national  economy^  the  stage  of  wholesale  produc- 
tion and  of  the  circulation  of  goods,  where  products  must 
ordinarily  pass  through  many  hands  before  they  reach  the 
consumer.  This  stage  is  not  so  easily  comprehended  as  are 
those  of  primitive  and  semicivilized  tribes.  It  is  not  grasped 
in  an  idea,  nor  explained  in  a  few  words.  It  is  a  stage  of  civi- 
lization in  which  the  actions  of  men  are  governed  by  many 
economic  laws,  many  ideas,  and  many  customs  not  found 
among  primitive  peoples. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 

Suggestions  based  on  the  Text 

1.  Make  a  table  of  parallel  columns  for  the  Negritos,  the 
Subanuns,  and  the  mountain  peoples,  comparing  them  as  to 
{a)  food ;  (&)  clothing  ;  (c)  shelter  ;  (d)  savings  and  other  forms 
of  wealth;  (e)  implements;  (/)  methods  of  agriculture ;  {g)  manu- 
facture ;  Qi)  commercial  and  industrial  organization. 


24  ECONOMIC  COKDITIONS 

2.  Would  more-advanced  peoples  occupy  by  preference  land 
which  the  Negritos  now  occupy  ?  3.  What  does  your  answer  sug- 
gest as  to  the  power  and  influence  of  the  Negritos  ?  4.  Do  these 
people  do  anything  to  advance  the  welfare  of  the  country  in  which 
they  live  ?  5.  Suggest  a  work  of  economic  value  which  they  could 
perform.  6.  Make  a  general  plan  for  the  economic  development 
of  the  Negritos,  pointing  out  difficulties  and  the  methods  of  over- 
coming them. 

7.  Apply  to  the  Subanuns  the  tests  suggested  in  the  questions 
on  the  Negritos.  8.  Under  what  influences  have  the  Subanuns 
made  their  progress  ?  9.  Would  additional  outside  influence  be  of 
value  in  hastening  their  progress  ?  10.  If  so,  how  should  this  in- 
fluence be  applied  ?  11.  Make  a  list  of  some  of  the  forces  which  re- 
tard the  development  of  a  backward  people  and  suggest  remedies. 

12.  Apply  to  the  mountain  peoples  the  tests  suggested  in  the 
questions  on  the  Subanuns.  13.  Do  all  forces  which  retard  the 
progress  of  a  backward  people  apply  to  the  mountain  peoples  ? 
14.  Would  any  of  the  features  of  your  plan  for  the  economic 
development  of  the  Negritos  be  useless  if  applied  to  the  mountain 
peoples  ? 

Suggestions  for  Reports  from  References 

1.  Give  in  some  detail  the  governmental  plan  for  the  advance- 
ment of  these  tribes.  2.  What  ofiicials  are  in  charge  ?  3.  How  can 
the  private  citizen  give  aid  ?  4.  Can  you  justify  the  taxation  of 
the  Filipinos  for  the  benefit  of  these  tribes  ?  5.  Do  you  consider 
that  the  government  or  any  private  citizen  has  any  right  to  exert 
influence  for  the  purpose  of  changing  the  customs  and  habits  of 
the  primitive  peoples  ?    6.  Defend  your  answer. 

7.  Where,  how,  and  why  are  kaingin  made  ?  8.  Their  effect  on 
standing  timber  and  the  cogon  area.  9.  Control  by  the  Bureau  of 
Forestry.    10.  Reforestation  and  habitual  kaingin  makers. 


Selection  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  Chapter 

1.  Human  needs.   Wealth  (Bullock,  pages  10-13).   2.  Stages  in 
the  production  of  wealth  (Bullock,  pages  29-31). 


PART  II.    AGRICULTURE 

CHAPTER  II 

EICE  AS  A  FOOD  CKOP^ 
Importance  and  Food  Value 

In  nearly  all  parts  of  the  Philippines  the  chief  food  is  rice 
and  fish,  or  corn  and  fish.  As  a  general  thmg,  the  more 
remote  a  place  is  from  the  sea,  the  less  fish  is  consumed ;  so 
that  in  many  inland  localities  the  diet  is  almost  entirely  vege- 
table. In  ordinary  times  of  plenty  the  food  of  both  the  well- 
to-do  and  the  poor  varies  little  in  either  quantity  or  kind. 
In  times  of  scarcity,  however,  the  food  of  the  poor  usually 
decreases  both  in  quality  and  in  quantity,  while  that  of  the 
rich  is  not  affected. 

From  the  point  of  view  of  food  values,  corn  is  a  better- 
balanced  ration  than  rice.  The  latter  is  deficient  in  fat,  and 
contains  less  protein  than  any  other  cereal.  Corn,  on  the  other 
hand,  is  high  in  fat,  and  has  a  considerable  percentage  of 
protein.  The  amount  of  protein  contained  in  the  three  chief 
food  cereals  is  as  follows  :  ^  rice,  8  per  cent ;  corn,  10  per  cent ; 
wheat,  12.2  per  cent.  Rice  is  easily  prepared,  and  is  easily 
digested  when  properly  cooked,  but  its  deficiency  in  nutritive 
values  must  be  made  up  by  other  foods  (such  as  fish,  beans, 
and  meat)  which  contain  proteids  and  fats.  The  consumption 
of  rice  alone,  toward  which  there  is  a  present  tendency  in 
the  Philippines,  results  in  malnutrition.    It  would  seem,  also, 

1  For  description  and  commerce,  see  "Commercial  Geography,  the  Mate- 
rials of  Commerce  for  the  Philippines,"  by  Miller,  Bureau  of  Education, 
Manila,  1911 ;  also  Bulletin  22,  Bureau  of  Agriculture,  Manila,  1912. 

2  Farmers'  Bulletin  298,  United  States  Department  of  Agriculture. 

26 


26  ECONOMIC  CONDITIONS 

that  the  cause  of  beriberi  ^  is  the  lack  of  phosphorus  in  the 
diet  of  poHshed  rice,  a  condition  which  can  be  overcome  by 
the  substitution  of  unpolished  rice  (which  contains  from  three 
to  five  times  as  much  phosphorus),  or  by  the  more  extensive 
use  of  fish  and  other  foods  containing  phosphorus. 

Cultivation 

Rice  is  not  only  the  chief  food  used  in  the  Philippines  as 
a  whole,  but  is  the  principal  crop  of  these  Islands.  An  appre- 
ciable quantity  of  mountain  or  highland  rice  is  grown,  mostly 
in  kaingin,  in  the  less  densely  populated  regions.  This  is 
sown  broadcast,  cultivated,  and  reaped  as  are  other  dry-land 
crops.  The  amount  of  rice  raised  by  this  system,  however,  is 
small  m  comparison  with  that  produced  by  the  lowland  (or 
flooded-field)  system,  by  which  the  greater  part  of  the  rice 
crop  of  the  Philippines  is  grown.  Along  most  eastern  coasts, 
and  on  the  northeastern  coasts  of  some  islands,  the  rainfall 
is  continuous  throughout  the  year,  so  that  there  can  be  no 
definite  seasons  for  rice  culture.  The  inhabitants  of  one  town 
may  be  plantuig  while  those  of  another  town,  not  more 
than  a  few  kilometers  away,  are  harvesting.  The  central  and 
western  regions  of  the  Philippines,  however,  are  subject  to 
a  dry  season,  during  which  rice  cannot  be  cultivated  without 
extensive  provision  for  water  storage  and  irrigation.  The 
amount  of  water  so  stored,  or  of  water  which  can  be  diverted 
from  rivers  during  the  dry  season,  is  almost  negligible.  Since 
the  chief  rice  districts  are  in  regions  affected  by  the  dry  season, 
it  holds  generally  for  the  Philippines  that  but  one  crop  of  rice 
is  raised  annually.  This  is  planted  and  cultivated  during  the 
rainy  season  (from  June  through  November)  and  harvested 
at  the  beginning  of  the  dry  season  (December  or  January). 

The  rice  lands  in  the  Philippines  are  divided  into  small 
fields  in  which  dikes  serve  to  keep  the  water.    When  the  soil 

1  A  prevalent  Oriental  disease  characterized  by  an  anaemic  condition  of 
the  body. 


RICE  AS  A  FOOD  CKOP 


27 


has  become  softened,  it  is  plowed  and ,  harrowed.  The  plow 
used  is  a  small  one-handled  affair  of  wood,  sometimes  shod 
with  iron,  which  merely  digs  and  does  not  leave  much  of  a 
furrow.  The  harrow  is  usually  made  of  bamboo,  with  iron 
or  wooden  pegs  driven  through  and  fastened.   In  many  places 


NEWLY  PLANTED  LOWLAND  RICE  FIELDS 


is  is  customary,  further,  to  reduce  the  soil  to  a  slush  by 'driv- 
ing carabaos  over  it  or  by  working  it  up  with  the  feet.  The 
seed  is  sown  thick  in  beds,  which  are  usually  near  the  house 
of  the  farmer.  When  the  young  plants  are  a  foot  high  or 
more,  the  women  pull  them  and  transplant  them  into  the 
fields.  If  the  rains  are  sufficient  to  drown  the  weeds,  the 
farmers  may  rest  until  harvest  time  ;  but  if  the  weather  is  so 
dry  that  the  water  does  not  stand  in  the  fields,  it  is  necessary 
to  cut  out  the  weeds. 


28  ECONOMIC  CONDITIONS 


Harvest,  Sale,  and  Consumption 

One  of  the  most  expensive  operations  in  the  production  of 
rice  is  the  harvesting,  which  is  done  by  hand.  The  heads  are 
cut  with  short  stalks,  which  are  tied  together  hi  bundles 
about  the  size  of  the  fist.  In  those  regions  of  the  Philippines 
where  there  are  many  small  holdings,  the  farmers  are  wont 
to  make  communal  labor  of  planting  and  harvesting.  In  many 
districts  where  land  is  in  large  holdings,  it  is  customary  to 
harvest  on  shares  for  an  amount  varying  from  one  tenth  to 
one  third  of  the  crop,  the  usual  amount  being  one  fifth.  Dur- 
ing the  latter  part  of  a  bountiful  harvest  even  half  the  crop 
may  be  given  to  reapers  as  an  inducement  to  keep  them  at 
work.  In  certain  places  there  is  a  tendency  to  substitute 
daily  wages  for  this  system,  particularly  when  a  poor  harvest 
occurs  and  the  price  of  rice  is  high.  In  other  places  the  two 
systems  are  combined,  as,  for  instance,  in  Nueva  Ecija,  where 
wages  varying  from  pO.15  to  PO.20  are  paid,  with  the  privi- 
lege of  carrying  away  as  much  rice  as  can  be  put  in  a  basket. 
Thus  a  family  of  three  may  work  six  days  and  get  P2.70  in 
cash,  and  four  or  five  cavans  of  rice  valued  at  ?10  or  more. 
As  a  substitute,  daily  wages  of  only  PO.40  are  paid.^  This 
system  of  harvesting  on  shares  is  decried  by  those  who  have 
made  a  study  of  the  situation  from  the  commercial  point  of 
view.  In  the  first  place,  it  results  in  an  exorbitant  cost  of  the 
production  of  rice.  In  the  second  place,  a  family  working 
a  month  can  obtain  enough  rice  to  support  them  for  six 
months,  during  which  they  need  do  no  labor.  This  is  con- 
ducive to  laziness  and  vice.  In  well-populated  sections  of  the 
Philippines  there  is,  during  the  harvest  season,  an  exodus  to 
rice  regions,  sometimes  a  considerable  distance  away.  Often 
whole  families  leave  their  homes.  On  returning  they  usually 
bring  with  them  their  share  of  the  crop. 

1  From  the  economic  report  of  Cenon  S.  Monasterial,  made  in  1912. 
Wages  and  prices  have  risen  since  then. 


Treading  out  the  (Ji 


A  Steam  Thresher 
METHODS  OF  THRESHING  RICE 


WlNK()WIX(i   WITH   TMK   WiND 


A  Winnowing  Machine 
WINNOWING  RICE 


82  ECONOMIC  CONDITIONS 

At  a  glance  it  would  seem  that  this  state  of  affairs  might 
be  changed  by  machinery,  but  thus  far  the  mechanical  har- 
vester has  not  been  successful  in  the  Philippines.  The  crop 
is  always  cut  by  hand,  and  m  nearly  all  districts  the  rice  is 
threshed  by  pounding  or  trampuig  it,  although  in  the  large 
rice-growing  regions  steam  threshers  are  coming  into  use. 
These  machines  are  generally  owned  by  companies  which 
/charge  one  tenth  of  the  amount  threshed.  The  companies 
are  usually  composed  of  local  landowners,  who  thus  divide 
the  initial  cost  of  the  threshers  among  themselves,  and  by 
this  cooperation  gain  the  use  of  machinery  which  no  one  of 
them  could  afford  to  purchase  by  himself. 

The  removal  of  the  hull  and  bran  is  the  final  step  in  the 
preparation  of  rice  for  cooking.  If  rice  is  to  be  used  locally, 
this  process  is  nearly  always  done  by  hand,  in  a  wooden 
mortar  and  with  a  wooden  pestle,  or  in  a  crude  rice  mill 
made  of  mud  and  bamboo.  In  exporting  regions,  such  as  the 
Central  Plain  of  Luzon,  rice  mills  have  been  introduced  in 
large  numbers,  the  product  being  sent  away  in  the  form  of 
polished  rice.  Except  in  large  cities  it  is  customary  for  the 
Filipinos  to  store  rice  in  the  husk,  since  it  is  supposed  to  keep 
better  in  this  way.  It  is  hulled  as  needed.  Where  mills  exist, 
however,  householders  often  take  their  rice  to  the  factory  one 

I  sack  at  a  time.  The  charges  for  milling  rice  are  usually  from 
twenty-live  to  forty  centavos  for  a  cavan  of  palay.^  The  mill 
owners  seldom  do  milling  on  shares.  The  larger  mills  buy 
palay  just  after  the  harvest  season,  but  do  not  mill  it  until 
private  milling  is  at  an  end.  Thus  the  machinery  is  kept 
going  the  whole  year,  and  a  good  profit  is  made  on  the  rise 
in  the  value  of  the  palay. 

In  certain  districts  of  the  Islands,  from  northern  Luzon  to 
Mindanao,  a  peculiar  phenomenon  is  connected  with  the  sale 
of  rice  by  owners  of  small  amounts  of  land.  Immediately 
after  the  harvest  the  price  of  rice  is  low,  but  with  almost 

*  From  data  at  the  Bureau  of  Agriculture. 


EICE  AS  A  FOOD  CROP 


33 


Rice  Mills 

[Source :  Bureau  of  Agriculture] 


NuMBEii  OF  Rice  Mills 

Province 

1 
1 

3 

1 

a 

.2 

a 

1 

o 

a 

Is 
S 

'S 

1 

0 

"3 

1 

Total  Maximum 
Daily  Capacity 

Albay    

Antique     .... 

Bataan 

Batangas  .... 

Bohol 

Bulacan     .... 

Capiz 

Cavite 

Cotabato    ... 
Ilocos  Norte  .    .    . 
Iloilo      ..... 

Laguna 

Lanao    

Leyte 

Mindoro    .... 
Negros  Occidental 
Nueva  Ecija  .    .    . 
Pangasinan   .    .    . 
Sorsogon    .... 
Tarlac    ..... 
Tayabas     .... 
Zambales  .... 

5 
22 

40 
4 

14 
1 
1 
3 

22 

4 

7 
5 

6 
3 

1 

25 

1 

20 
3 

1 

5 

2 

1 
8 
3 

1 
1 

23 

22 
6 

2 

14 

12 

2 
12 

11 

3 

4 

5 

1 

2 

2 
1 

2 

5 

2 

2 

1 

22 

1 

5 

51 

1 

40 

27 

16 

1 

1 

25 

72 

3 

6 

2 

9 

9 

5 

4 

7 

32 

4 

Cavans 

947 

2 

820 

5,531 

16 

9,066 

990 

3,059 

150 

120 

1,794 

5,330 

108 

55 

160 

450 

3,880 

1,525 

56 

1,090 

796 

244 

Total  .... 

137 

70 

55 

40 

14 

12 

3 

2 

10 

343 

36,189 

Note.  The  total  daily  capacity  shown  above  does  not  represent  the  actual 
output  of  the  mills,  but  their  potential  maximum  capacity.  The  mills  of 
Manila  are  not  included.  (The  Statistical  Bulletin  No.  1,  Bureau  of  Commerce 
and  Industry.) 

This  table  indicates  the  provinces  which  are  important  in  the  production 
of  rice  for  commerce.  The  table  of  Rice  Production  and  Consumption  on 
page  59  indicates,  however,  that  several  of  the  provinces  which  have  facili- 
ties for  milling  large  quantities  of  palay  do  not  export  rice  ;  in  such  provinces 
as  Batangas  and  Laguna  the  product  of  the  mills  is  consumed  locally. 


34  ECONOMIC  CONDITIONS 

inconceivable  shortsightedness  the  small  farmers  sell  practi- 
cally their  whole  crop  to  the  merchants  who  control  the  trade. 
Soon  the  small  amount  of  rice  which  they  have  retamed  is 
exhausted,  and  they  begin  to  buy  back  at  a  constantly  advanc- 
ing price  what  they  have  sold,  so  that  before  the  next  harvest 
they  are  obliged  to  pay  from  one  hundred  to  two  hundred 
per  cent  profit  to  the  merchants.  These  small  farmers  often 
squander  their  money  as  soon  as  they  have  obtained  it;  this 
causes  a  considerable  amount  of  misery.  Sometimes  they  are 
so  improvident,  or  so  hard  pressed,  that  they  sell  their  crop 
in  advance,  at  about  half  its  nominal  value. 

EicE  Imports 

The  amount  of  rice  raised  in  the  Philippines  has  been  in- 
sufficient to  supply  local  consumption  by  about  twenty  per 
cent.  It  was  estimated  by  the  Bureau  of  Agriculture  that  the 
local  production  in  1910  was  about  530,000  metric  tons  of 
cleaned  rice.  In  the  same  year  185,000  metric  tons  of  rice 
were  imported,^  the  value  being  about  twelve  per  cent  of  the 
total  imports. 

In  the  middle  of  the  nineteenth  century  the  Philippines 
were  already  importing  a  little  rice.  In  the  year  1877  about 
23,000  metric  tons  were  imported,  being  5.78  per  cent  of 
the  total  value  of  imports.  Since  then  there  has  been  a  fluc- 
tuating but  increased  import.  In  the  year  1903  about  334,000 
metric  tons  of  rice,  valued  at  more  than  P 25,000,000,  and 
representing  about  thirty-seven  per  cent  of  the  total  imports, 
were  brought  into  .the  Philippines.  This  is  the  largest  annual 
import  of  rice  in  the  history  of  the  Islands.  The  lowest  annual 
import  in  recent  times  was  in  1913,  when  about  87,000  tons 
were  brought  in,  valued  at  about  p6,300,000.    This  value 

*  The  year  1910  may  be  taken  as  a  usual  one.  If  we  allow  an  average 
consumption  of  one  and  a  half  chupas  of  rice  a  day  for  6,500,000  inhabitants 
(that  is,  the  population  of  the  Philippines  less  the  population  of  corn  regions), 
we  obtain  a  total  yearly  consumption  of  715,000  metric  tons,  a  verification 
of  the  accuracy  of  the  figures  above. 


EICE  AS  A  FOOD  CROP  36 

represented  about  six  per  cent  of  the  total  value  of  all 
the  importations  into  the  Islands. 

The  history  of  rice  importations  into  the  Philippines  and  of 
the  price  of  rice  is  graphically  shown  in  Chart  I.^  In  Figure  I 
the  light  angular  line  shows  the  actual  imports  by  years.  The 
heavy  line  is  a  smoothed  one,  and  shows  the  tendency  of  the 
rice  trade  over  a  period  of  years.^ 

The  lines  of  Figure  II  represent  actual  prices  and  the  tend- 
ency of  prices  respectively.  From  the  smoothed  line  (heavy) 
it  will  be  noted  that  the  price  of  rice  fell  rapidly  in  the  period 
1877-1895 ;  that  it  jumped  considerably  in  1899 ;  and  that 
since  then  it  has  been  slightly  on  the  increase.  The  high  prices 
in  1912  and  1918  were  the  result  of  a  general  shortage  in  rice. 

From  the  smoothed  line  in  Figure  I  it  will  be  seen  that 
imports  of  rice  gradually  increased  during  the  later  years  of 
Spanish  occupation,  but  were  dropping  sharply  at  the  end  of 
the  nineteenth  century.  Perhaps  they  would  have  ceased,  had 
not  a  new  commercial  policy  been  established,  the  policy  of 
encouraging  foreign  trade. 

The  high  level  of  rice  imports  after  1900  (represented  by 
the  heavy  line)  was  brought  about  by  this  change  and  by 
disturbances  of  one  kind  or  another. 

Let  us  now  study  the  particulars  of  our  rice  trade.  Turnmg 
to  the  fine  line,  which  shows  actual  imports,  we  see  that  rice 
imports  have  fluctuated  greatly,  there  being  six  periods  of 
extraordinary  importation  between  the  years  1877  and  1918. 
Either  of  two  conditions  may  have  caused  these  extraordinary 
importations,  namely,  the  price  of  rice  in  Saigon,  or  shortage 
in  the  local  crop.  If  we  compare  the  line  of  actual  imports 
with  that  of  actual  price,  we  shall  see  that  they  bear  no  con- 
stant relation.  Imports  of  rice  do  not  tend  to  increase  as  price 
decreases,  nor  vice  versa.    It  is  probable  that  the  world  price  / 

1  No  reliable  customs  statistics  are  available  for  the  years  1896-1898 
inclusive. 

2  The  position  of  the  smoothed  line  is  obtained  by  averaging  the  figures 
of  rice  imports  by  fives.   The  averages  so  obtained  are  noted  by  crosses. 


36 


ECONOMIC  CONDITIONS 


/  of  rice  is  not  much  affected  by  the  unportations  of  rice  into 
the  Phihppines;  it  is  also  true  that  the  Islands  do  not  im- 
port larger  quantities  of  rice  when  the  price  in  Saigon  is  low. 


II 

1880 
1882 
1884 
1886 
1888 
1890 
1892 
1894 
1896 
1898 
1900 
1902 
1904 
1906 
1908 
1910 
1912 

1914 
1916 
1918 

aw 

Rinderpest-1896- 

im 

Drojjghi  1903 

i  A  1       1 

RICE  IMPORTS 

OF  JHE 

PfflLIPPINE  ISLANDS 

.Absolute           

Averages  by  5*s        X 

Drought  1' 

11-191S 

iWO 
280 

' 

' 

260 

-! 

/ 

"Drougnt 
Typhoon 
1913-P14 

i 

\ 

K 

180 

1 

\ 

/ 

J 

\ 

\ 

/ 

./ 

\i 

IGO 

7 

J 

1 

1 

X 

V 

120 

F,n( 

-of 

:oba 

tfon 

onol 

V 

/ 

1 

7 

lolera  18f 

2-3 

-Droug 
Kinder 

It  18 
pest 
Cho 

/ 

Fi( 

I.  I. 

/ 

1887 

/ 

80 
60 
40 
20 
0 
12 

Is 

§4 

Drough 

;187 

'/ 

1 

=^ 

A 

i 

> 

fV 

, 

'\ 

/ 

1 

V 

\ 

V 

1 

\ 

/ 

\ 

r 

\ 

Ha 

If  year  onl 

7 

Fi 

..r 

t 

p?^ 

\^ 

A 

^ 

_l 

' 

^ 

y 

- 

jta 

^^ 

*.*-H<y 

0 

*»t 

±. 

_ 

CHART  I.    PHILIPPINE  RICE  IMPORTS 
Census  and  Customs  Statistics 


Extraordinary  importations  of  rice  would  therefore  seem  to 
be  the  result  of  decrease  in  the  local  crop ;  history  bears  out 
such  a  conclusion.   The  unusual  importation  of  1879  was  the 


EICE  AS  A  FOOD  CROP  37 

result  of  the  drought  of  the  season  of  1878-1879.  The  large 
import  of  the  year  1883-1884  was  caused  by  the  end  of  the 
tobacco  monopoly  in  1881  (and  the  consequent  increased  plant- 
ing of  tobacco  at  the  expense  of  rice  cultivation)  and  by  the 
cholera  of  1882-1883.  The  large  increase  in  rice  imports  in 
the  years  1886-1889  was  due  to  the  drought  of  1885,  to  the 
epizootia  (similar  to  or  identical  with  rinderpest),  which  began 
in  1887,  and  to  cholera  in  1888-1889.  The  increased  imports 
of  1901-1905  were  occasioned  by  the  rinderpest  and  the 
drought  of  1903.  The  drought  of  1911-1912  again  caused  a 
very  heavy  importation  of  rice.  The  local  crop  of  rice  and 
corn  in  1912-1913  was  very  large  in  consequence  of  increased 
planting  and  favorable  weather  conditions.  Hence  the  impor- 
tation of  rice  in  1913  and  1914  fell  far  below  the  average. 
Drought  and  typhoon  in  the  season  of  1913-1914  caused  the 
latest  extraordinary  increase  in  the  importation  of  rice. 

Extraordinary  importations  of  rice  are  the  result  of  tem- 
porary conditions.  The  heavy  line  in  Figure  I  shows  that 
since  1900  the  general  level  of  the  greatly  increased  importa- 
tions of  rice  has  been  maintained,  and  that  apparently  this 
level  is  still  continuing.  The  causes  which  have  brought  about 
large  importations  of  rice  are  permanent,  and  may  be  discussed 
under  four  headmgs : 

1.  First  should  be  mentioned  the  lack  of  work  animals.  In 
Japan  and  regions  of  Java  a  carabao  in  a  rice  field  is  an  un- 
usual sight,  all  preparation  of  the  soil  being  regularly  made 
by  hand  labor.  In  tlie  Philippines,  however,  it  is  considered 
essential  to  plow  with  a  carabao,  and  hence,  because  of  the 
scarcity  of  animals  due  to  rinderpest,  much  of  the  rice  land 
has  been  allowed  to  remain  idle. 

2.  Actual  failure  to  cultivate  rice  lands  often  occurs  even 
where  animals  are  obtainable.  The  method  of  rice  culture  in 
the  Pliilippines  is  such  that  it  involves  greater  effort,  disa- 
greeableness,  and  monotony  than  most  other  work ;  and  the 
status  given  the  field  laborer  is  the  lowest.  As  a  result,  there 
is  a  tendency  to  take  up  more  agreeable  work  or  to  labor  as 


88  ECONOMIC  CONDITIONS 

little  as  possible  in  the  rice  fields.  This  condition  has  left 
many  small  holdings  uncultivated,  and  many  large  owners 
without  labor.  The  failure  to  cultivate  rice  lands  can  often 
be  laid  at  the  door  of  the  large  owners  also,  who  have  pre- 
ferred to  live  in  town  rather  than  spend  their  time  in  the 
country  superintending  their  farms. 

3.  Failure  to  obtain  a  full  crop  also  results  in  importation. 
This  may  be  due  to  several  causes:  (a)  when  there  is  no 
irrigation,  crops  often  suffer  from  lack  of  water,  so  that  a 


1878 
1880 
1882 
1884 
1886 
1888 
1890 
.1892 
1894 
1896 
1898 
1900 
1902 
1904 
1906 
1908 
1910 
1912 
1914, 
1916 
1918 

PHILIPPINE  ISLANDS 

Comparative  increase  in 

y 

/ 

1 

\ 

/ 

I 
I 

/N 

// 

1 

1 

\^ 

\ 

^ 

A 

/ 

1 

^ 

\^ 

l^ 

A 

^,> 

A, 

^ 

/ 

r 

V 

*' 

'X 

^\ 

1 

-^ 

-- 

/\ 

>^ 

^ 

^ 

/ 

\ 

/ 

/ 

f 

\ 
\ 

\  / 

"- 

V 

\ 
\ 

CHART  II,  A 


complete  or  partial  failure  of  the  crop  occurs  in  many  locali- 
ties every  year,  and  in  exceptional  seasons  (as  in  1911-1912) 
throughout  the  Philippines ;  (5)  preparation  and  cultiva- 
tion of  the  soil  are  usually  poorly  done,  this  being  due,  for 
the  most  part,  to  lack  of  suitable  agricultural  implements; 
(f?)  pests,  such  as  worms  and  field  rats,  do  no  small  amount 
of  damage  to  the  rice  crop,  and  in  exceptional  years  locusts 
destroy  much  of  the  growing  and  standing  crop ;  (tZ)  much 
of  the  possible  crop  of  rice  is  lost  because  the  seed  is  not 
selected. 

4.  Another  important  reason  for  the  diminished  cultivation 
of  rice  in  the  Philippines  is  the  production  of  export  crops,  such 


RICE  AS  A  FOOD  CROP 


39 


as  copra,  abaca,  tobacco,  and  sugar.  These  crops  do  not  require  \ 
so  much  work,  and  it  is  of  a  more  agreeable  character.  The  high 
price  received  for  such  exports,  and  the  use  of  less  and  more 
easily  obtained  labor  in  their  production,  have  encouraged  land- 
owners to  devote  their  holdings  to  these  products  rather  than 
to  the  production  of  food.  Indeed,  it  would  seem  that  the  net 
returns  from  raising  export  crops  and  importing  food  are  fre- 
quently greater  than  the  returns  from  producing  the  food  itself, 
not  only  to  the  landlords,  but  to  the  laborers  and  to  the  Islands. 
Chart  II,  A,  shows  the  relative  increase  of  rice  imports  into 
the  Philippines  and  the  total  exports  from  the  Philippines  since 


1  1  i   1   1  1   1  1  1  1  1   1  i   1  1 

PHILIPPINE  ISLANDS 

Comparative  increase  in 
Rice  imports  _ 

/ 

/ 

r 

\ 

y 

/ 
/ 

/ 

i^ 

X 

K 

/ 
/ 
1 

/ 
/ 

A- 

<7^ 

V 

\ 

/ 
/ 

^J 

/ 

1^' 

/ 

CHART  II,  B 


1877.^  It  will  be  seen  that  until  1895  rice  imports,  although 
they  fluctuated  greatly,  increased  in  about  the  same  proportion 
as  the  total  exports.  In  1899,  however,  rice  imports  increased 
in  greater  proportion  than  did  the  total  exports,  and  up  to 
1913  kept  this  relative  position  (which  is  probably  due  to  the 
scarcity  of  animals  and  the  noncultivation  of  rice  fields).  How- 
ever, if  we  compare  the  years  1899-1912  (by  bringing  them 
together  at  1899  in  Chart  II,  B},  we  shall  see  that  in  this 
period  also  rice  imports  and  the  total  exports  tended  to  increase 
in  the  same  proportion,  the  upward  movement  during  the  first 

1  This  chart  is  drawn  on  a  logarithmic  scale,  which  shows  no  definite 
amounts,  but  (practically)  percentages  of  increase  and  decrease. 


40  ECONOMIC  CONDITIONS 

few  years  being  caused  by  famine,  pest,  and  drought.  Hence, 
from  customs  statistics  it  is  learned  that  the  general  increase 
in  imports  of  rice  was  due  to  a  proportional  increase  in  exports, 
and  that  the  extraordinary  high  level  in  the  importations  of 
rice  in  the  period  1899-1912,  over  the  period  1877-1895, 
resulted  from  the  scarcity  of  animals  for  cultivating  rice  fields. 
With  the  year  1913  a  change  appeared.  General  exports  con- 
tinued to  increase  in  volume,  but  a  lower  level  in  the  importa- 
tions of  rice  seemed  to  have  been  reached.  Evidently  other 
factors  than  export  crops  influenced  the  situation  in  rice 
after  1913. 

Increase  in  Domestic  Production 

The  only  economic  consideration  which  would  warrant  the 
importation  of  rice  by  the  Philippines  is  found  under  the  fourth 
heading  (page  38),  the  raising  of  such  crops  as  furnish  products 
which  can  be  exported  and  exchanged  for  more  rice  than  could 
be  grown  locally.  But  such  a  procedure,  when  carried  to  the 
extreme,  results  in  a  dangerous  situation,  since  it  makes  the 
Philippines  dependent  on  foreign  supplies  for  food.  It  is  an 
axiom  of  good  government  that  a  country  should  produce  as 
much  of  its  own  food  as  possible,  and  keep  on  hand  a  supply 
as  a  protection  against  short  crops  or  unfavorable  conditions 
in  the  world  at  large.  This  subject  cannot  be  treated  here  at 
length,  since  it  properly  comes  under  a  more  general  heading 
(see  Chapter  XI),  but  it  will  be  readily  seen  that  if  the  crop 
in  southeastern  Asia  (the  rice-exporting  region  of  the  world) 
should  be  seriously  curtailed  by  unfavorable  climatic  condi- 
tions, political  upheaval,  or  the  hke,  the  consequences  would  be 
disastrous  to  the  Philippines.  Such  a  condition  was  approached 
in  the  season  of  1911-1912,  when  there  was  a  partial  failure  of 
the  rice  crop.  During  the  World  War  the  demands  in  Europe 
for  Saigon  rice,  and  the  lack  of  transportation  to  the  Philip- 
pines, produced  a  situation  fraught  with  danger  to  the  Islands. 
A  consideration  of  the  methods  by  which  production  of  rice 


RICE  AS  A  FOOD  CKOP  41 

in  the  Philippines  may  be  increased  is  therefore  extremely 
important.     Let  us  proceed  to  examine  these  methods: 

1.  An  increase  in  the  number  of  work  animals  (carabaos 
and  cattle)  will  bring  into  cultivation  much  of  the  rice  land 
now  lying  idle.  In  several  districts  of  the  Philippines  there 
have  been  large  importations  of  draft  animals  from  Asia,  and 
a  correspondingly  increased  area  devoted  to  rice  production ; 
but  on  account  of  rinderpest  and  other  diseases  existing  in 
Asia  this  importation  is  extremely  dangerous.  Several  out- 
breaks of  rinderpest  and  other  diseases  have  been  directly 
traced  to  infection  introduced  in  this  manner.  Hence  the 
importation  of  foreign  cattle  and  carabaos  has  been  carefully 
guarded,  and  the  government  has  undertaken  a  campaign  of 
quarantine  and  close  supervision  of  the  draft  animals  coming 
into  the  Philippines,  with  the  hope  that  by  this  means  rinder- 
pest will  be  held  in  control  and  no  further  infection  from, out- 
side will  be  allowed  to  complicate  the  domestic  situation.  The 
average  number  of  carabaos  imported  annually  is  about  1500, 
and  the  average  number  of  cattle  about  10,000.  Most  of  the 
latter  are  killed  for  meat.  From  1903  to  1917  the  number 
of  carabaos  in  the  Islands  had  increased  from  640,000  to  more 
than  1,200,000,  and  the  number  of  cattle  from  130,000  to 
more  than  500,000.  This  indicates  that  the  attempt  to  guard 
the  natural  increase  of  work  animals  and  of  the  imported 
animals  has  been  successful. 

An  indirect  accession  to  the  work  animals  available  for  rice 
fields  is  the  result  of  the  expansion  of  motor  transportation, 
and  the  introduction  of  small  farm  tractors  on  dry  cultures. 
Heavy  machinery  cannot  be  used  on  the  soft  rice  paddies,  but 
the  use  of  tractors  on  sugar  and  other  dry  lands  liberates  a 
considerable  number  of  animals  for  the  cultivation  of  rice. 
The  substitution  of  the  motor  truck  for  the  carabao  and  bull 
cart  is  also  a  help. 

2.  A  further  increase  in  the  yield  of  rice  would  be  possible  i 
if  the  profit  could  be  increased  by  a  reduction  in  the  cost  of 
the  production.  ^ 


42  ECONOMIC  CONDITIONS 

The  fall  in  rice  imports  in  1'J13  was  chiefly  due  to  the 
large  domestic  crop  of  1912-1913.  This  increase  in  the  domes- 
tic crop  resulted  from  the  high  prices  of  that  period,  and  is 
a  measure  of  the  effect  of  good  profits.  The  large  areas 
planted  with  rice  in  1917  and  1918  were  the  results  of  high 
prices  for  rice  during  war  times.  Indeed,  from  Chart  III  it 
is  evident  that  there  is  a  close  connection  between  the  price 
of  rice  and  the  production.  Naturally,  when  the  price  is  high 
and  profits  are  good,  a  larger  area  is  planted  and  more  care 
is  taken  than  when  the  price  is  normal  and  there  is  little 
margin  of  profit. 

But  cannot  greater  profits  be  made  from  rice  culture  with- 
out abnormally  increasing  the  price  of  rice  ?  Cannot  the  cost 
of  production  be  lowered  ? 

a.  The  largest  reduction  can  probably  be  made  in  the  har- 
vesting. The  share  system,  by  which  the  harvesters  receive 
as  much  as  half  the  crop,  and  the  resultant  ill  effect  on  the 
workers,  has  been  explained.  By  the  substitution  of  a  wage 
system  these  evil  effects  would  be  done  away  with,  and  greater 
profit  would  accrue  to  the  grower.  It  is  probable  that  further 
reduction  in  the  cost  of  harvesting  could.be  made  by  the  use 
of  improved  implements.  It  is  possible  that  better  hand  imple- 
ments than  the  present  short  knives  can  be  devised.  In  the 
United  States  the  cradle  is  used  to  advantage.  This  cuts 
quickly,  and  leaves  the  grain  in  a  condition  to  cure  rapidly 
and  evenly,  and  to  be  easily  handled;  but  it  takes  a  con- 
siderable amount  of  strength  to  use  the  cradle.^  Harvesters 
intended  for  the  temperate  regions  have  not  been  successful 
in  the  Philippines.  For  instance,  some  machines  imported 
from  America  were  found  impracticable  because  they  were 
geared  to  work  at  the  rate  of  two  and  a  fourth  miles  an 
hour  (which  is  the  rate  at  which  horses  can  pull  the  machine), 
and  would  not  operate  when  going  at  a  rate  of  one  and  a 
fourth  miles  an  hour  (which  is  the  speed  of  a  carabao).  Com- 
bined harvesters  would  also  be  unsatisfactory,  on  account  of 

1  The  Louisiana  Planter  (August  6,  1910),  p.  87. 


RICE  AS  A  FOOD  CROP 


43 


the  smallness  of  the  field  and  the  tendency  of  heavy  machines 
to  become  stuck  in  the  mud.  If  machinery  is  to  be  used  in 
the  PhiUppines,  the  kind  must  be  determined  by  experience 
in  the  local  needs. 

h.  If  small  producers  would  discontinue  their  practice  of 
selling  nearly  all  their  rice  at  the  harvest,  only  to  buy  it 
back  later  at  a  much  higher  price,  much  loss  would  be  avoided. 


Photo  by  Bureau  of  Agriculture 
HARVESTING  RICE  BY  HAND  IN  THE  PHILIPPINES 


3.  Even  with  the  present  number  of  animals  and  the  pres- 
ent area  of  cultivated  land,  the  amount  of  rice  produced  in 
the  Philippines  can  be  greatly  increased  by  better  methods 
of  cultivation. 

a.  For  the  inefficient  plow  and  harrow  now  used  there  can 
be  substituted  plows,  harrows,  and  other  implements  which 
are  much  more  effective  in  digging  into  the  soil,  turning  it 
over,  and  pulverizing  it.  It  must  not  be  thought,  however, 
that  the  agricultural  machinery  used  in  other  countries  can 
be  used  equally  well  in  the  Philippines.  Such  machinery 
is  an  outgrowth  of  need  and  experience.  Nearly  all  of  it 
originated  in  America,  where  the  problem  has  been  to  culti- 
vate large  fields  with  little  labor,  and  where  horses  are  used. 
The  problem  in  the  Philippines  is  to  obtain  machinery  suitable 
for  land  soaked  with  water,  machinery  which  can  be  drawn  by 


44  ECONOMIC  CONDITIONS 

carabaos  or  cattle,  and  which  will  be  effective  in  small  fields 
where  the  furrows  are  short  and  the  animals  have  to  turn 
many  times. ^  Plows  adapted  to  American  fields  cannot  be 
used  in  the  Philippines  because  they  do  not  meet  these  con- 
ditions. Drills  for  planting  the  seed  have  not  been  successful 
because  they  are  not  intended  to  work  in  soil  so  poorly  plowed 
as  the  Philippine  fields.  On  the  other  hand,  plows  which  have 
been  especially  designed  for  Philippine  use  have  succeeded  in 
a  number  of  districts.  The  matter  of  agricultural  implements 
can  therefore  best  be  met  in  the  Philippmes  either  by  adapt- 
ing the  implements  and  machinery  of  other  countries  to  the 
local  requirements,  or  by  devising  something  new.  The  oppor- 
tunity is  large. 

h.  Another  important  consideration  is  that  of  selecting  seed. 
There  are  many  hundred  varieties  of  rice  in  the  Philippines, 
most  of  which  are  of  the  lowland.  Some  of  these  yield  twice 
as  much  as  others.  In  most  communities  farmers  have  come 
to  recognize  the  kinds  which  give  best  results  in  their  partic- 
ular soil,  but  in  many  localities  there  is  still  but  little  atten- 
tion given  to  the  selection  of  the  variety  to  be  planted.  It  has 
been  estimated  by  the  Bureau  of  Agriculture  that  out  of  1242 
well-known  varieties  but  fifty  are  capable  of  a  yield  and  qual- 
ity commercially  profitable.  While  there  is  often  selection  in 
the  variety  of  rice  raised,  in  but  few  instances  is  there  any 
selection  of  the  seed.  Even  if  seed  be  put  aside  for  the 
next  planting,  there  is  no  attempt  to  pick  out  the  best  heads. 
Farmers  usually  take  what  palay  is  left  over  in  their  homes, 

1  The  difficulty  of  the  short  furrow  results  from  the  building  of  dikes  with 
straight  sides.  This  may  possibly  be  overcome  by  making  rounded  dikes,  over 
which  the  machine  can  be  dragged.  Plows,  harrows,  and  drills  can  be  pulled 
by  carabaos  or  cattle  ;  binders  and  such  machinery,  which  only  work  satis- 
factorily at  a  good  rate  of  speed,  may  be  propelled  by  gasoline.  All  heavy 
machinery,  however,  can  only  be  used  on  firm  ground. 

Most  rice  soils  in  the  Philippines  are  such  that  during  the  planting  or 
harvesting  they  are  too  soft  to  sustain  machinery.  The  improved  plow  is 
thus  far  the  only  agricultural  implement  which  has  been  successfully  adapted 
to  small  farming  in  the  Philippines.  The  single-handle  steel-beam  breaking 
plow  is  a  success. 


Cradling  a  Field  of  Wheat 
Courtesy  of  Keller  and  Bishop 


Harvesters  in  Manitoba,  Canada 
From  Bri*2:ham's  "  Commercial  Geography 


Wheat  bundled  by  Harvesting  Machines  and  piled  in  Shocks 
From  Brigham's  "Commercial  Geography" 

METHODS  OF  HARVESTING 


46  ECONOMIC  CONDITIONS 

or  they  buy  seed  of  any  character.  By  the  cultivation  of  the 
best  varieties,  and  the  careful  selection  of  seed  from  these,  the 
yield  of  rice  in  the  Philippines  could  be  increased  several  fold. 
c.  Perhaps  the  most  important  factor  m  increasing  the  yield 
of  rice  is  efficient  irrigation.  Without  consideration  of  the  addi- 
tional crops  that  could  be  raised  by  irrigation,  which  would 
at  least  double  the  total  yield  from  the  land  under  cultiva- 
tion, the  benefit  to  be  derived  from  a  constant  supply  of  water 
demands  consideration.  The  prime  need  of  rice  during  its 
growth  is  water.  Conditions  in  the  Philippines  are  such  that 
at  the  present  time  commercial  (artificial)  manures  cannot 
be  profitably  applied  to  rice  lands ;  but  a  constant  supply  of 
water  assures  a  good  crop  on  almost  any  type  of  soil  which 
has  an  underlying  impervious  layer  of  clay.^  Rice  lands  are 
usually  dependent  on  the  rains,  and  much  rice  is  lost  here  and 
there  throughout  the  Archipelago  in  all  years  ;  during  seasons 
of  widespread  drought,  such  as  occurred  in  1911-1912,  there 
is  a  general  failure  of  the  crop.  These  losses  could  be  stopped 
by  storage  and  irrigation.  The  methods  by  which  the  water 
may  be  obtained  and  distributed  on  the  land  will  be  taken 
up  under  a  more  general  heading,  but  the  question  of  organ- 
ization for  the  construction  of  irrigation  systems  may  receive 
a  word  of  attention  here.  In  certain  regions  local  capitalists 
have  built  irrigation  systems  on  a  small  scale.  In  a  few  dis- 
tricts such  systems  have  been  constructed  by  cooperation ; 
that  is,  the  fields  which  receive  water  belong  to  those  who  have 
built  the  system.  Here  and  there  are  found  rather  extensive 
irrigation  works,  built  years  ago  by  the  owners  of  large  estates, 
particularly  on  the  friar  lands.  Their  efficiency  has  been  in 
many  cases  reduced  or  destroyed  through  neglect  or  damage. 
But  neither  capitalistic,  nor  communal,  nor  private  enterprise 
is  able  to  build  the  irrigation  works  which  certain  regions 
need,  and  which  topography  warrants.  Such  projects  must 
be  undertaken  by  the  government,  since  they  require  careful 
study  for  a  long  period  of  years,   and  the  expenditure  of 

^  Bulletin  22^  Bureau  of  Agriculture,  Manila. 


RICE  AS  A  FOOD  CKOP  47 

large  sums  of  money  for  construction  and  maintenance.  It  is 
estimated  that  there  are  in  the  Philippines  1,365,000  hec- 
tares of  rice  land  under  cultivation.  Of  these  about  50,000 
hectares  are  irrigated  by  old  systems.  Preliminary  surveys 
have  proved  the  existence  of  485,000  hectares  of  land  capable 
of  irrigation.^    Much  of  it  is  rice  land. 

How  does  irrigation  increase  the  yield  of  rice  ?  Its  effect 
in  overcoming  drought  and  in  allowing  the  planting  of  more 
than  one  crop  annually  is  self-evident.  A  less  evident  effect 
is  that  from  the  control  of  water.  For  instance,  rice  should 
be  transplanted  just  before  the  nodes  form  ;  never  afterwards, 
because  the  yield  is  diminished.  Philippine  agriculturists  do 
not  thoroughly  understand  this,  and  usually  transplant  after 
the  nodes  are  formed.  However,  they  are  often  forced  to  delay 
transplanting  because  the  rains  do  not  fall  in  time  to  prepare 
the  soil.  If  an  irrigation  system  exists,  the  water  can  be 
turned  on  the  fields  when  desired,  and  thus  the  time  of  plant- 
ing can  be  controlled.  This  control  is  also  important  in  the 
choking  of  weeds  and  the  withdrawal  of  water  when  the 
grain  is  ripening. 

The  average  annual  production  of  rice  throughout  the  Phil- 
ippines is  probably  less  than  twenty-five  cavans  a  hectare. 
The  average  production  of  rice  in  exceptionally  favorable 
years,  when  sufficient  rain  falls  at  the  required  time,  is  from 
twenty-five  to  forty  cavans  a  hectare.  Under  the  present  sys- 
tem of  tillage,  planting,  and  seed  selection  this  difference  may 
be  said  to  result  from  irrigation.^  Irrigated  lands  properly 
cultivated  and  planted  with  selected  seed  produce  from  fifty/ 
to  seventy-five  cavans  a  hectare.  It  may  be  stated,  therefore, 
that  the  cultivated  rice  lands  in  the  Philippines  should,  with 
irrigation,  better  cultivation,  and  seed  selection,  yield  from 
three  to  four  times  the  quantity  of  rice  now  produced.  With  an 
increase  in  the  number  of  work  animals  and  with  a  lower 


1  Philippine  Agricultural  Review,  Vol.  II,  No.  11. 

2  These  estimates  are  given  after  a  careful  review  of  all  data  available, 
including  some  eight  hundred  estimates  from  as  many  municipalities. 


48 


ECONOMIC  CONDITIONS 


cost  of  production  many  of  the  rice  fields  which  at  present 
are  lying  idle  would  be  brought  under  cultivation.  With 
better  means  of  production  at  least  four  times  the  present 
yield  could  be  obtained.  Hence  it  is  possible  for  the  existing 
fields  to  yield  more  than  a  sufficient  quantity  of  rice  for  the 
needs  of  the  Islands. 

4.  The  changes  on  which  this  increased  production  depends 
can  be  brought  about  but  slowly,  and  for  quick  returns  another 
method  of  meeting  the  situation  has  presented  itself.    This  is 


RICE  HARVEST  IN  LOUISIANA 
From  Brigham's  "  Commercial  Geography  " 


to  bring  large  tracts  of  virgin  land  into  extensive  cultivation. 
Such  an  undertaking  can  be  carried  out  only  by  the  govern- 
ment or  by  large  corporations.  Throughout  the  Orient  rice  is 
raised  in  small  diked  fields,  just  as  in  the  Philippines,  except 
that  in  many  localities  hoes,  spades,  and  mattocks  are  used 
instead  of  the  plow,  and  that  in  most  countries  careful  culti- 
vation of  the  soil  and  selection  of  seed  are  carried  on,  making 
the  yield  by  the  hectare  much  larger. 

In  the  United  States,  however,  an  entirely  different  method 
is  followed.  Rice  was  introduced  into  the  American  colonies 
in  1790,  by  accident.  It  gradually  became  the  product  of 
small  fields  along  the  southeastern  seacoast.  Modern  machin- 
ery is  now  used  in  preparing  the  soil,  and  drills  are  used  in 


RICE  AS  A  FOOD  CROP  49 

planting.  The  crop  is  cut  with  sickles,  but  is  threshed  and 
cleaned  by  machines. 

In  1884  farmers  were  settling  the  great  southern  prairie 
of  Louisiana  and  Texas  along  the  Gulf  of  Mexico.  They  found 
that  rice  grew  well,  and  they  began  immediately  to  adapt  large 
agricultural  machinery,  such  as  is  used  in  growing  wheat. 
Difficulties  were  met  and  overcome.  On  thie  whole,  the  exten- 
sive operations  have  been  most  successful,  and  larger  areas  are 
being  given  to  rice  every  year.  Large  fields  and  more  or  less 
extensive  irrigation  systems  are  used,  the  water  being  pumped 
from  rivers  or  wells.  Heavy  modern  machinery  is  used  in 
preparing  the  soil  and  in  planting.  From  the  time  the  rice  is 
a  few  inches  high  until  the  harvest,  the  field  is  kept  under 
water.  Just  before  the  rice  is  mature,  the  water  is  drawn  off, 
so  that  by  the  time  the  crop  is  ready  for  harvest  the  ground 
is  hard  enough  to  bear  the  weight  of  the  self-binders,  which 
automatically  cut  and  bundle  the  grain.  Large  threshers  and 
mills  prepare  the  rice  for  market.  The  product  thus  obtained 
is  of  high  quality.^ 

The  northern  part  of  the  Cagayan  Valley  is  a  large  plain, 
with  soil  well  suited  to  rice.  In  the  northeastern  part  of  the 
Central  Plain  of  Luzon  there  are  large  tracts  of  virgin  rice 
land.  In  such  regions  as  the  Gandara  Valley  of  Samar,  and 
the  Agusan  and  Cotabato  valleys  of  Mindanao,  there  are 
thousands  of  hectares  of  new  rice  land.  It  would  seem  that 
with  modern  methods  all  these  were  capable  of  producing  vast 
quantities  of  rice  at  a  low  cost.  However,  the  question  of 
available  labor  and  of  conditions  of  weather  and  soil  must 
be  considered.  The  problem  of  bringing  laborers  into  these 
regions,  of  founding  settlements,  and  of  importing  food  and 
other  necessities  is  difficult.  In  the  "bonanza"  rice  region  of 
the  United  States  planting  is  done  at  the  beginning  of  the 
rainy  season,  and  the  harvest  takes  place  during  the  dry  season. 

1  The  World  To-day  (January,  1910),  p.  09  ;  Farmers'  Bulletin  417,  United 
States  Department  of  Agriculture.  The  prices  noted  are  less  than  the  current 
prices  for  rice  in  the  Philippines. 


50  ECONOMIC  CONDITIONS 

Frost  and  snow  prevent  the  growth  of  weeds  until  the  fields 
are  again  ready  for  planting.  That  is,  the  following  conditions 
prevail :  (1)  machinery  can  be  used  on  the  land  to  prepare 
it  for  planting ;  (2)  a  variety  of  rice  is  planted  which  matures 
during  the  ensuing  dry  season ;  (8)  irrigation  is  practiced, 
which  insures  the  control  of  water  on  the  fields  during  the 
growing  season,  and  the  withdrawal  of  water  when  the  grain 
is  ripening ;  (4)  this  control  of  water  and  the  absence  of  un- 
seasonable rains  insure  ground  f}rm  enough  to  support  the 
machinery  used  in  reaping ;  (5)  frost  and  snow  then  prevent 
the  growth  of  weeds  until  the  next  planting  season. 

These  conditions  are  not  applicable  to  the  Philippines  except 
in  the  western  parts  of  the  Islands,  where  a  distinct  dry  season 
prevails.  The  eastern  parts  have  no  dry  season.  The  central 
parts  have  a  short  but  uncertain  dry  season.^  In  the  Central 
Plain  of  Luzon  a  definite  dry  season  exists,  but  the  varieties  of 
rice  which  are  planted  mature  in  less  time  than  the  duration 
of  the  rainy  season  ;  hence  it  would  be  necessary  to  plant  early 
on  dry  soil  with  large  machinery  and  reap  by  hand  on  soggy 
land,  or  to  plant  by  hand  within  the  rainy  season  and  reap  by 
heavy  machinery  during  the  dry  season.  Therefore  it  is  not 
probable  that  large  cultivation  with  machinery  will  succeed 
in  the  Philippines  except  on  the  limited  soils  which  quickly 
become  compact  after  a  hard  rain. 

However,  it  may  be  possible  to  develop  or  find  a  variety  of 
rice  which  will  mature  in  a  longer  period  of  time  than  those 
varieties  now  ordinarily  planted.  If  so,  the  plan  would  be 
feasible.  But  losses  would  have  to  be  anticipated,  since  rains 
may  occur  during  the  dry  season  ;  these  would  lodge  the  grain 
and  soften  the  ground,  so  that  machinery  could  not  be  used 
for  reaping.  It  might  be  possible,  also,  to  develop  or  find  a 
quickly  maturing  variety  of  rice  which  could-  be  planted  at 
the  beginning  of  the  dry  season  and  reaped  before  the  end  of 
the  season.    In  this  case,  however,  unseasonable  rains  might 

1  See  the  discussion  of  Philippine  climate  in  Miller  and  Polley's  "  Inter- 
mediate Geography." 


RICE  AS  A  FOOD  CROP  61 

again  interfere ;  furthermore,  plans  would  have  to  be  perfected 
for  cultivating  the  fields  during  the  rainy  season,  to  prevent 
the  growth  of  heavy  weeds,  which  would  be  expensive  to 
remove.   Irrigation  would,  of  course,  be  necessary. 

The  feasibility  of  extensive  wet  cultivation  in  the  Philip- 
pines is  therefore  very  doubtful. 

A  more  immediate  and  feasible  way  of  increasing  cultivated 
rice  areas  is  by  the  settlement  of  virgin  rice  lands  with  colo- 
nists from  the  densely  populated  regions  of  the  Islands.  The 
provisions  of  the  homestead  law,  the  building  of  roads  and 
railroads,  and  the  improvement  of  water  transportation,  have 
opened  up  large  areas  of  new  land  suitable  for  rice.  The 
settlement  of  several  rice  regions,  such  as  those  of  Nueva 
Ecija  by  Ilocanos,  has  been  accomplished  independently  of 
government  aid,  and  has  brought  several  thousand  hectares 
of  land  into  cultivation.  The  government  has  undertaken  the 
establishment  of  rice  colonies  also,  by  furnishing  not  only 
transportation  to  the  new  lands,  but  carabaos,  implements, 
and  funds.  The  colonists  repay  these  advances  as  soon  as 
their  farms  are  on  a  paying  basis.  The  six  rice  colonies  of 
Cotabato  were  recruited  from  Cebu.  They  brought  a  thou- 
sand hectares  of  land  into  cultivation  and  were  on  a  paying 
basis  within  two  years  after  their  formation.  The  success  of 
these  colonies  augurs  well  for  the  development  of  the  plan. 

During  the  war  there  was  great  development  in  the  pi'O- 
duction  of  tractors  from  the  point  of  view  of  size,  price, 
and  adaptability.  The  tractor  of  to-day  is  run  by  gasoline  or 
kerosene ;  by  comparison  with  former  types  it  is  cheap, 
as  regards  original  cost,  maintenance,  and  running  expenses. 
The  development  of  these  tractors  was  due  to  the  lack  of 
labor  and  of  farm  animals,  and  to  the  great  demand  for  food 
products. 

Although  these  comparatively  light  machines  are  too  heavy 
to  use  on  flooded  fields,  they  may  possibly  be  of  value  in  the 
cultivation  of  upland  fields  and  the  production  of  upland  rice. 
Much  of  the  failure  in  the  production  of  upland  rice  is  due  to 


52  ECONOMIC  CONDITIONS 

the  poor  preparation  of  the  ground ;  lack  of  adequate  culti- 
vation before  planting  permits  the  weeds  to  spring  up  and 
choke  out  the  rice.  The  tractor  and  the  modern  plow  turn 
the  soil  much  more  deeply  than  can  be  done  with  the  carabao 
and  native  plow.  For  the  three  years  previous  to  1919  abun- 
dant harvests  of  upland  rice  were  produced  on  certain  limited 
areas  in  the  vichiity  of  Munoz,  Nueva  Ecija,  by  the  use  of 
tractors  with  modern  plows. 

Commercial  concerns  are  already  interesting  themselves  in 
this  new  phase  of  rice  cultivation.  If  the  results  are  successful, 
this  adaptation  of  the  extensive  method  of  rice  cultivation 
may  bring  large  areas  of  uncultivated  land  into  production, 
and  solve  the  rice  problems  in  the  Philippines.  The  practical 
results  are,  however,  still  problematical. 

The  Rice  Situation  in  1919 

Has  anything  been  accomplished  in  the  past  nine  years 
toward  improving  the  rice  situation  in  the  Philippines  ?  The 
experiences  of  1919  indicate  progress. 

The  World  War  destroyed  much  food;  there  was  a  lack 
of  food  production  in  Europe ;  the  armies  absorbed  labor 
power ;  the  destruction  of  agricultural  machinery  and  of  ani- 
mals was  appalling ;  there  was  much  diversion  of  labor  from 
agricultural  to  war  industries ;  Europe  called  on  Asia  for  food. 
Meanwhile  the  people  of  the  Orient  were  demanding  more 
food  for  themselves;  the  war  conditions  in  Europe  brought 
great  prosperity  to  Japan,  the  Philippines,  and  other  coun- 
tries, and  gave  the  people  greater  purchasing  power.  At 
the  same  time  a  poor  crop  occurred  in  southwestern  Asia.  A 
world  shortage  of  rice  existed.  In  Japan  serious  rice  riots 
occurred,  because  food  was  expensive  and  difficult  to  secure. 
Famines  occurred  in  India  and  China. 

This  condition  became  evident  in  the  statistics  of  rice  im- 
portation into  the  Philippines.    For  the  first  six  months  of 


RICE  AS  A  FOOD  CROP  63 

1918  a  normal  importation  of  77,642,000  kilos  was  recorded; 
for  the  first  six  months  in  1919  the  importation  was  only 
42,634,000  kilos ;  in  July  of  1918  there  were  26,000,000  kilos 
imported,  and  in  July  of  1919  only  4,000,000  kilos.  At  the 
same  time  prices  increased  from  about  nine  to  sixteen  centavos 
a  kilo ;  since  the  price  of  imported  rice  determines  the  price 
of  the  domestic  crop,  the  cost  of  rice  to  the  people  in  the 
Philippines  doubled. 

As  rice  increased  in  price,  speculators  hoarded  it,  expecting  I 
to  realize  tremendous  profits.    Moreover,  a  general  poverty  of  \ 
transportation  facilities  left  large  quantities  of  rice  in  the  gran- 
ary regions,  while  the  export  sections  of  the  Islands  lacked 
sufficient  for  daily  food.    The  cost  of  rice  rose  to  exorbitant  / 
figures,  and  the  people  were  unable  to  buy. 

At  this  point  the  government  took  the  matter  in  hand  | 
and  fixed  a  price  of  Pl5  a  sack.  This,  however,  was  too  low,  ' 
as  became  evident  when  the  merchants  refused  to  sell  and 
withdrew  their  stock  from  the  market.  Then  the  government 
fixed  a  price  of  P16.25  for  first-class  rice,  P15.75  for  second- 
class  rice,  and  Pl4  for  third-class  rice.  These  regulations 
proved  only  partly  satisfactory ;  for  many  retailers  and  some 
wholesalers  were  forced  out  of  business. 

The  government,  therefore,  began  purchasing  rice  and 
sending  it  out  to  the  provinces  in  which  shortages  existed. 
Typhoons  and  floods  happened  to  occur  in  August  and  in- 
terfered with  the  moving  of  rice,  especially  from  the  Central 
Plain  of  Luzon,  to  such  an  extent  that  in  localities  like 
Sorsogon,  Samar,  Cebu,  and  Manila,  which  are  dependent 
on  imported  rice,  conditions  of  famine  prevailed. 

The  public  jumped  to  the  conclusion  that  Island-wide 
shortage  of  rice  existed.  This  was  a  natural  conclusion  if 
drawn  from  the  statistics  of  imports  alone.  The  government, 
however,  after  investigating,  announced  that  there  was  enough 
rice  in  the  Philippines  to  last  until  the  next  harvest,  and 
purchased    only    3,000,000    kilos    of    the    10,000,000    made 


64  ECONOMIC  CONDITIONS 

available  in  Saigon  through  the  United  States  government. 
Do  available  figures  indicate  that  the  government  was  right  ? 
These  figures  have  been  plotted  in  Chart  III. 

Of  all  the  factors  which  have  influenced  the  rice  situation 
since  1910,  it  will  be  noted,  only  imports  of  rice  into  the 
Philippines  have  remained  stationary,  with  a  tendency  to  de- 
crease, while  rice  area,  yield  per  hectare,  total  production, 
and  consumption  per  capita  have  been  increasing.  These  fig- 
ures, even  if  they  are  not  gone  into  carefully,  indicate  a  healthy 
condition  of  affairs. 

A  more  careful  study  indicates  that  the  importation  of  rice 
in  1918  was  due  to  the  prosperity  of  the  Islands.  The  pro- 
duction of  rice  in  the  Philippines  was  such  in  1918  that  the 
domestic  crop  would  have  been  sufficient  if  the  old  standards 
had  been  maintained.  The  increment  in  the  domestic  rice 
crop  would  have  been  more  than  sufficient  to  feed  the  in- 
creased population  of  the  Islands  if  the  consumption  per  capita 
had  been  the  same  as  in  previous  years. 

The  average  consumption  per  capita  for  the  nine  years 
1910-1918  was  about  85  kilos  ;  in  1918  it  was  about  112  kilos, 
an  advance  of  27  kilos.  In  other  words,  in  1918  the  ten  mil- 
lion people  of  the  Philippines  consumed  an  extra  270,000,000 
kilos  of  rice  as  the  result  of  prosperity  and  a  betterment  in  the 
standard  of  living.  About  160,000,000  kilos  were  imported, 
and  110,000,000  kilos  were  produced  in  the  Islands.  If  the 
average  consumption  per  capita  for  the  seven  years  1910-1916, 
79.5  kilos,  is  selected  for  a  basis,  an  even  more  favorable 
condition  is  indicated. 

These  figures  show  that  the  production  of  rice  had  increased 
in  much  greater  proportion  than  population.  Imports  of  rice 
continued  only  because  general  prosperity  had  increased  in 
the  Philippines,  resulting  in  increased  purchasing  power  of  the 
people.    The  people  were  consuming  more  rice  per  capita.^ 

1  This  same  phenomenon  was  noted  in  Japan,  where  the  increased  income 
of  the  people  during  the  war  was  to  a  considerable  extent  expended  in  buying 
more  rice  to  eat. 


KICE  AS  A  FOOD  CBOP  66 

People  have  a  right  to  satisfy  their  hunger,  and  every 
country  should  build  up  a  surplus  stock  of  food  against  a 
failure  of  crops.  The  figures  noted  in  Chart  III  should  not 
be  interpreted  as  meaning  that  the  Islands  are  now  economi- 
cally independent,  so  far  as  their  basic  food  is  concerned. 
Moreover,  even  with  the  very  favorable  conditions  of  1918, 
the  margin  of  safety  was  too  small.  If  in  1918  the  same 
unfavorable  conditions  of  weather  had  prevailed  as  in  1912,  a 
disaster  could  not  have  been  averted,  for  it  would  not  have 
been  possible  to  secure  sufficient  rice  from  French  Indo- 
China,  Siam,  or  Burma  to  last  until  the  next  crop  matured. 
The  figures  do  indicate  a  most  satisfactory  development  in 
the  domestic  rice  industry,  a  development  which  shows  that  the 
Islands  are  able  to  produce  their  own  food  and  to  maintain 
an  increased  production  of  export  crops.  The  large  crop  of 
1918  was  the  result  of  the  increased  area  given  to  rice  and 
the  large  yield  per  hectare.  The  average  area  for  the  pre- 
vious eight  years  had  been  1,024,000  hectares ;  in  1918  it  was 
1,368,000  hectares.  If  profits  remain  attractive  and  animal 
diseases  are  held  within  control,  this  area  will  doubtless  be 
increased.  The  yield  per  hectare  of  732  kilos  in  1918  was 
about  200  kilos  greater  than  the  average  of  the  eight  pre- 
vious years.  This  yield  was  largely  due  to  favorable  condi- 
tions, but  there  was  undoubtedly  some  permanent  increase  in 
yield  per  hectare  by  reason  of  better  methods  of  cultivation. 

The  old  problems  of  increasing  the  area  and  yield  still 
remain,  but  it  is  possible  that  the  Philippines  may  become 
independent  of  other  countries  for  the  basic  food;  if  not 
entirely  independent,  at  least  for  the  proper  amount  of  rice 
required  to  feed  the  population.  The  problem  of  distributing 
the  surplus  domestic  crop  must  also  receive  attention.  The 
table  of  production  and  consumption  by  provinces  indicates 
that  the  surplus  stock  is  nearly  all  in  the  Central  Plain  of 
Luzon.  The  problem  is  to  move  this  and  distribute  it  to  the 
provinces  where  annual  shortages  occur.  An  improvement 
in  railroads  would   be  of  assistance.    The  establishment  of 


56 


ECONOMIC  CONDITIONS 


warehouses,  especially  if  under  government  control,  would 
do  a  great  deal  to  stabilize  the  industry.  Farmers  could  then 
receive  a  fair  price  for  their  crops  immediately  after  harvest ; 
hoarding  and  speculating  would  be  prevented;  and  there  would 
be  a  supply  of  rice  for  emergencies. 


PHILIPPINE  RICE  CONSUMPTrOPT 
Produced 
Tin  ported 


1910  1911  1912  1913  1914  1915  1916  1917  1918 

CHART  III.    PHILIPPINE   RICE  CONSUMPTION 


The  Rice  Industry  of  the  Future 

Chart  III  indicates  that  the  five  factors  in  the  increased 
production  of  rice  have  received  attention,  but  it  is  yet  too 
soon  to  forecast  whether  rice  imports  into  the  Islands  will 
undergo  a  general  decline  or  a  general  increase.  The  general 
level  of  rice  importations  will  depend  largely  on  (1)  the 


RICE  AS  A  FOOD  CROP  57 

increase  or  decrease  of  the  volume  of  Philippine  exports  ;  (2) 
the  availability  of  work  animals ;  (3)  the  extension  of  systems 
of  irrigation  ;  (4)  improvements  in  methods  of  cultivating  and 
reaping  ;  (5)  the  standard  of  living  and  the  purchasing  power 
of  the  Filipinos  ;  (6)  the  increase  in  population  ;  (7)  the  facil- 
ities for  transportation ;  (8)  the  general  world  conditions  in- 
fluencing the  production  and  consumption  of  food  stuffs^  and 
consequently  the  supply  and  the  price  of  rice.  In  any  year 
the  climatic  conditions  during  the  rice  season,  the  general 
conditions  for  health,  and  factors  influencing  the  domestic  and 
Saigon  rice  market,  will  determine  the  amount  of  the  Philip- 
pine harvest  and  import.  The  price  will  be  determined  by 
the  price  of  rice  in  Saigon,  which  is  in  turn  fixed  by  the  size 
of  the  crop  there  and  by  the  world's  demand  for  rice. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  With  the  present  agricultural  methods  and  conditions  in^  the 
Philippines,  is  the  rice  import  beneficial  or  not  ?  2.  Do  you  be- 
lieve that  the  imports  of  rice  into  the  Philippines  will  increase 
or  diminish  ?  Why  ?  3.  What  percentage  of  the  rice  used  in  the 
Philippines  is  raised  here  ?  4.  What  percentage  is  imported  ? 
5.  Why  is  it  that  the  price  of  rice  in  Saigon  fixes  the  price  of  rice 
grown  in  the  Philippines  ?  6.  It  was  thought  that  the  remission 
of  the  duty  on  rice  in  1918  would  effect  a  general  reduction  of 
from  ten  to  fifteen  per  cent  in  the  prices.  Why  ?  7.  To  make  the 
Philippines  self-sufficing  how  much  must  the  normal  rice  crop  be 
increased  ?  8.  Explain  how  it  might  be  increased  to  this  point 
on  the  present  area  normally  given  to  rice. 

9.  Explain  some  abuses  and  give  instances  of  lack  of  system 
in  producing  and  marketing  rice  in  the  Philippines.  10.  If  the 
Philippines  were  blockaded,  or  shipments  of  rice  were  cut  off, 
what  steps  would  you  propose  for  the  immediate  supply  of 
food  for  the  Islands  ?  11.  If  the  supply  of  imported  rice  were 
gradually  diminishing,  what  steps  would  you  take  to  have  the 
domestic  supply  permanently  increased  to  meet  the  domestic 
demands  ? 


68  ECONOMIC  CONDITIONS 

12.  Explain  the  value  of  different  kinds  of  rice  on  nonirrigated 
lands  with  respect  to  the  period  required  to  reach  maturity,  and 
the  normal  seasons  of  planting  and  harvesting ;  on  irrigated  lands 
with  respect  to  the  production  of  more  than  one  crop  a  year. 

13.  A  comparison  of  the  intensive  cultivation  of  rice  in  the 
Philippines  and  of  its  extensive  culture  in  the  United  States. 
14.  Can  agricultural  machinery  be  used  in  cultivating  rice  in  the 
Philippines  ? 

15.  Prepare  a  chart  showing  in  terms  of  value  what  percentage 
the  rice  imports  are  of  the  total  imports  since  1899.  16.  Smooth 
the  curves  by  averaging  the  percentages  by  fives.  17.  Inter- 
pret this  chart,  taking  into  consideration  the  fact  that  Philip- 
pine imports  and  exports  have  increased  in  about  the  same 
proportion. 

18.  What  are  the  three  great  problems  connected  with  the 
Philippine  rice  situation  ?  19.  What  are  the  five  most  important 
factors  with  respect  to  increasing  the  production  of  rice  ? 

20.  Should  there  be  a  high  duty  on  rice  imported  into  the 
Philippines  ?  Explain  your  answer.  21.  What  is  the  present 
duty? 

22.  What  is  the  effect  of  the  increased  population  on  the  rice 
question  ?  of  the  increased  prosperity  and  purchasing  power  of 
the  people  ? 

23.  From  the  table  on  rice  mills  name  the  provinces  where  rice 
is  raised  commercially,  and  check  your  deductions  from  the  table 
on  rice  production  and  consumption  by  provinces. 

24.  Explain  how  a  better  system  of  transportation  will  affect 
the  rice  problem  in  the  Philippines. 

25.  In  normal  years  a  considerable  amount  of  rice  is  fed  to  live 
stock,  especially  horses  and  chickens ;  does  this  consumption  of 
rice  affect  to  any  great  degree  the  figures  given  in  the  text  ? 

26.  The  following  item  of  news  is  taken  from  a  Manila  paper 
of  August,  1919 : 

In  the  province  of  Sorsogon  a  man  has  been  killed  for  half  a  cavan 
of  rice.  He  had  purchased  the  rice  at  the  market  and  was  returning 
home  through  fields  of  abaca,  when  he  was  set  upon  by  four  or  five  men 
and  killed,  the  murderers  escaping  with  the  coveted  rice. 

Comment  on  this. 


EICE  AS  A  FOOD  CROP 


59 


Rice  produced  and  consumed  (July  1,  1917- June  30,  1918) 


Pkovince 


Crop  ^ 


Consumeds  Surplus 


Shortage 


Abra 

Albay     

Ambos  Camarines     .... 

Antique 

Bataan 

Batanes 

Batangas 

Bohol 

Bulacan 

Cagayan     

Capiz 

Cavite 

Cebu 

Ilocos  Norte 

Ilocos  Sur 

Iloilo 

Isabela 

Laguna  

La  Union 

Leyte 

Manila,  city  of 

Mindanao  and  Sulu :  Agusan 

Bukidnon 

Cotabato 

Davao 

Lanao     

Sulu 

Zamboanga 

Mindoro 

Misamis 

Mountain 

Nueva  Ecija 

Nueva  Vizcaya 

Occidental  Negros     .... 

Oriental  Negros 

Palawan 

Pampanga 

Pangasinan 

Rizal 

Romblon 

Samar 

Sorsogon 

Surigao 

Tarlac 

Tayabas     

Zambales 


Cavans ^ 
138,142 
298,679 
366,608 
208,016 
133,768 
141 
323,003 
350,588 
781,514 
321,757 
653,048 
414,471 
51,728 
635,798 
265,206 
1,285,063 
16,876 
272,042 
492,187 
475,198 

9,309 

8,257 

20,731 

16,283 

175 

42,623 

102,109 

98,309 

250,593 

2,267,632 

97,058 

413,726 

56,565 

13,797 

772,119 

2,585,344 

342,315 

63,525 

140,069 

75,610 

189,664 

1,019,161 

360,649 

321,011 


Cavans 
133,870 
600,130 
601,885 
328,400 
105,300 
17,860 
588,805 
632,500 
616,340 
395,265 
589,390 
323,485 

1,495,320 
380,935 
351,000 
934,440 
202,840 
360,305 
304,960 
982,860 
546,895 
122,615 
119,455 
200,595 
225,790 
163,510 
227,080 
256,505 
131,000 
363,850 
795,735 
345,150 
71,215 
850,650 
544,750 
133,790 
554,775 

1,099,020 
370,830 
135,800 
668,070 
412,990 
241,645 
344,565 
521,860 
227,255 


Cavans 
4,272 


28,468 


265,174 

63,658 
90,986 

254,863 

350,623 

187,227 


1,922,482 
25,843 


217,344 
1,486,324 


674,696 
93,756 


Cavana 

301,451 
236,277 
120,384 

17,719 
266,802 
281,912 

73,508 


1,443,692 

85,794 

185,964 
88,263 

607,662 
646,895 
113,306 
119,455 
192,338 
205,054 
147,227 
226,905 
213,882 
28,891 
266,541 
645,142 


436,924 
488,185 
119,993 


28,516 

72,276 

628,001 

337,380 

51,981 

161,211 


Total 


16,750,472 


19,521,285  5,665,616 


8,436,429 


Net  shortage  for  the  Philippine  Islands  in  1918 2,770,813 


1  Bureau  of  Agriculture.  ^  One  cavan  =  67^  kilos,  *  Estimated. 


60  ECONOMIC  CONDITIONS 

27.  Comment  on  the  following  item  of  news  also : 

Hunger  is  already  threatening.  It  is  leading  an  element  of  the  people 
to  something  like  madness.  It  has  been  rumored  that  a  band  of  "  mal- 
hechores  "  is  somewhere  in  Nasugbu,  a  neighboring  municipality.  No 
depredations  have  as  yet  been  reported  as  committed  by  them,  but  it 
is  apparent  that  they  are  capable  of  doing  much  harm  to  the  community. 
The  people  are  uneasy,  and  are  on  the  lookout  for  impending  danger. 
With  this  condition  of  affairs,  living  in  this  neighborhood  is  far  from 
peaceful. 

The  constabulary  also  received  reports  yesterday  from  Iloilo  and 
Samar  describing  similar  conditions. 

Panic,  rioting,  disorder,  hunger,  and  actual  famine  are  all  hinted  at, 
or  predicted,  in  two  telegrams  just  received  at  constabulary  headquarters 
in  regard  to  the  rice  situation  in  the  provinces  of  Samar  and  Iloilo. 

The  message  received  from  the  constabulary  officer  in  command  of 
the  forces  in  Samar  says  that  there  is  a  rice  crisis  in  every  town  of  the 
province,  including  Catbalogan. 

The  telegram  says  that  rioting  and  general  disorder  is  a  possibility 
at  the  present  time,  and  that  the  general  situation  is  certain  to  become 
dangerous  if  a  shipment  of  rice  does  not  arrive  there  soon.  In  the  in- 
terior of  the  province,  the  message  says,  the  people  have  enough  corn 
and  root  products  to  satisfy  their  immediate  hunger,  but  the  rice  short- 
age is  being  felt  in  every  town  of  the  province. 

In  August,  1919,  an  article  appeared  in  the  Manila  papers  stat- 
ing that  unless  the  people  ate  seventy-five  riceless  meals  before 
the  next  harvest,  famine  would  result.  This  recommendation  was 
based  on  the  following  figures  :  a  population  of  ten  million  people 
for  the  Islands ;  importations  from  Saigon  in  1917  (147,000,000 
kilos  of  rice)  were  higher  than  those  of  1918 ;  the  native  crop  of 
rice  of  1918-1919  was  larger  than  that  of  1917-1918  ;  the  average 
consumption  per  capita  is  112  kilos  per  annum,  or  307  grams 
a  day.  According  to  the  figures  above  the  Philippines  require 
402,700  kilos  of  foreign  rice  a  day  to  meet  the  necessary  consump- 
tion of  the  Islands.  From  the  date  in  question  until  the  rice  har- 
vest in  December  there  were  150  days,  which  indicates  a  shortage 
of  60,405,000  kilos. 

28.  What  essential  point  did  these  figures  not  take  into  con- 
sideration ?  29.  Prove  from  the  same  figures  used  in  this  article 
(Chart  III)  that  the  shortage  did  not  necessarily  exist. 


RICE  AS  A  FOOD  CROP  61 

30.  From  Chart  I  why  do  you  think  a  large  rice  area  was 
planted  in  1919  ? 


Suggestions  for  the  Study  of  Local  Conditions 

1.  Forms  of  seed  selection  in  local  rice  fields.  Make  a  list  of 
local  varieties  of  rice,  explaining  the  characteristics  and  points  in 
favor  and  against  each.    Bring  in  samples. 

2.  Write  a  description  of  a  rice  mill,  comparing  the  different 
operations  with  cleaning  by  hand. 

3.  Bring  in  a  report  as  to  how  rice  culture  in  your  province 
might  be  improved;  how  the  cost  of  production  and  marketing 
might  be  reduced. 

4.  Bring  in  a  paper  making  recommendations  as  to  the  re- 
establishment  of  old  temporary  dams  and  irrigation  systems  in 
the  locality. 

5.  Describe  the  control  of  commercial  stocks  of  rice  in  your 
locality  and  province. 


Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  Make  and  explain  a  chart  showing  the  uses  of  rice.  2.  Ex- 
plain the  control  and  prevention  of  beriberi. 

3.  From  the  latest  "  Statistics  on  Principal  Crops  of  the  Phil- 
ippine Islands  "  prepare  a  chart  representing  the  amount  of  rice 
production  of  the  Philippines.  4.  Divide  it  into  sections  repre- 
senting the  production  of  the  chief  rice-producing  provinces. 
5.  Compare  these.  6.  From  the  table  on  rice  production  and 
consumption  by  provinces,  and  by  referring  to  Miller's  "  Commercial 
Geography  "  and  Miller  and  Policy's  "  Intermediate  Geography," 
prepare  a  map  of  the  Philippines  showing  the  regions  of  rice  ex- 
port and  import,  and  those  regions  producing  enough  rice  for  local 
consumption.  7.  Explain  the  reason  for  the  importation  of  rice  in 
each  case. 

8.  In  August,  1919,  it  was  estimated  that  the  crop  of  1919 
would  be  one  third  less  than  that  of  1918.  At  the  average 
consumption  per  capita  for  the  previous  nine  years,  would  this 


62  ECONOMIC  CONDITIONS 

crop  have  been  sufficient  to  feed  the  population  of  the  Philip- 
pines ?  9.  If  not,  how  much  rice  would  have  been  required  in 
addition  ? 

10.  From  the  statistics  of  the  Bureau  of  Agriculture  determine 
what  the  rice  crop  of  1919  actually  was,  and  answer  these  ques- 
tions as  to  its  sufficiency  and  the  amount  of  import  required. 

11.  Describe  the  production,  harvesting,  and  marketing  of 
wheat,  and  the  milling  of  flour  in  the  United  States.  12.  Make 
a  comparison  of  its  problems  with  the  problems  of  rice  growing 
and  marketing  in  the  Philippines.  13.  Could  a  similar  organi- 
zation for  marketing  rice  be  developed  in  the  Philippines  ? 
(Brigham,  pages  1-21.) 

14.  Some  capitalists  have  become  interested  in  the  development 
of  lands  in  the  Cotabato  Valley  and  the  Central  Plain  of  Luzon. 
Both  areas  are  capable  of  irrigation.  They  have  decided  to  plant 
rice  extensively.  You  are  appointed  by  the  directors  of  the  com- 
pany to  bring  in  reports  as  to  the  feasibility  of  the  two  schemes. 
Do  so,  making  use  of  the  charts  of  rainfall  in  Miller  and  Polley's 
"  Intermediate  Geography  "  in  so  far  as  the  seasons  of  rainfall  are 
concerned. 

15.  Make  a  study  of  Act  Number  2818  of  the  Fourth  Philippine 
Legislature,  an  act  to  encourage  the  increase  of  the  rice  and  corn 
production  in  the  Philippine  Islands,  etc.,  and  bring  in  a  report 
of  what  the  government  has  done,  and  the  success  that  has 
attended  the  application  of  this  law  to  the  Philippines  as  a  whole, 
and  to  your  locality. 

16.  The  food-importing  and  the  food-exporting  countries  of 
the  world. 

17.  Discuss  the  difference  in  the  effect  of  submarine  warfare 
on  the  food  supply  of  Great  Britain  and  of  France ;  the  effect  of 
the  blockade  of  Germany  on  its  food  supply. 

18.  Secure  the  necessary  data  from  the  latest  annual  report  of 
the  Collector  of  Customs,  and  bring  Chart  I  down  to  the  present 
time.  19.  Comment  on  these  new  figures,  in  relation  to  those  of 
former  years. 

20.  Obtain  from  the  Bureau  of  Agriculture  the  data  necessary 
to  bring  down  to  the  present  the  table  on  the  annual  rice  yield  in 
the  Philippines.  Make  a  chart  representing  these  figures.  Com- 
pare it  with  Chart  I,  Philippine  Rice  Imports.    21.  Explain  the 


RICE  AS  A  FOOD  CROP  63 

causes  for  the  extraordinarily  high  imports  of  rice  in  terms  of 
Chart  I  and  this  chart ;  for  the  unusually  low  imports. 

22.  Describe  the  world's  production  of  rice  and  the  rice  trade 
(Finch  and  Baker  ;  Miller ;  Toothaker ;  Brigham),  making  careful 
comparisons  with  the  Philippines. 

Studies  from  the  Philippine  Census  of  1918 
(when  Available) 

1.  The  rice  industry  of  the  Philippines.  2.  Rice  mills  in  the 
Philippines. 


CHAPTER  III 

CORN  AS  A  FOOD  CROP^ 

Importance  in  the  World 

As  compared  with  wheat  or  rice,  corn  has,  in  the  world's 
market,  a  rather  pecuHar  status.  Although  the  world's  corn 
crop  is  larger  than  that  of  wheat  or  rice,  the  comparative 
amount  of  corn  directly  consumed  as  a  human  food  is  small. 
Probably  the  chief  reason  for  relegating  it  to  the  position  of 
an  animal  food  is  the  coarse  and  rough  texture  of  corn  meal 
when  the  ground  fibrous  hull  is  present.  The  people  of  wheat- 
eating  countries  are  prejudiced  against  corn  because  of  its  color 
and  the  unfitness  of  its  meal  for  porous  bread.  The  protein 
of  corn,  unlike  the  gluten  of  wheat,  is  not  elastic,  and  the  bread 
is  granular  rather  than  porous.  Moreover,  corn  bread  is  not 
so  attractive  as  wheat  bread,  and  does  not  keep  in  good  condi- 
tion so  long.  In  the  Orient  it  is  compared  unfavorably  with 
rice,  since  it  has  to  be  cooked  nearly  twice  as  long,  and  in 
tropical  countries  generally  it  has  found  less  favor  on  account 
of  the  ease  with  which  weevils  destroy  it  when  stored. 

Corn  has  therefore  become  the  chief  food  in  but  few  regions 
of  the  earth,  although  in  many  countries  it  is  an  important 
supplementary  food.  Throughout  the  world  it  has  been  used 
mostly  in  the  fattening  of  hogs  and  cattle,  and  in  several 
important  manufacturing  industries.  In  recent  years,  how- 
ever, the  value  of  corn  for  direct  human  consumption  has  been 
more  thoroughly  understood,  and  methods  of  preparation  have 
been  developed  by  which  this  grain  can  be  made  more  diges- 
tible and  more  appetizing.  The  chief  advances  made  in  the 
commercial  preparation  of  corn  have  been  in  separating  the 
hull  from  the  meal,  thus  increasing  its  digestibility,  and  in 

*  Bulletin  23^  Bureau  of  Agriculture,  Manila,  1912. 
64 


CORN  AS  A  FOOD  CROP  65 

eliminating  the  germ,  thus  preventing  the  meal  from  becoming 
rancid.  In  the  United  States,  especially,  these  improvements 
have  been  undertaken  in  an  organized  manner,  and  corn  propa- 
ganda has  spread  even  to  Europe  in  the  attempt  to  educate 
people  in  the  proper  preparation  of  corn  for  food.  During  the 
World  War  the  people  of  the  United  States  were  able  to 
conserve  millions  of  bushels  of  wheat  by  substituting  corn 
for  wheat  on  their  tables;  in  Europe  corn  was  mixed  with 
wheat  and  other  cereals  in  making  bread. 

Corn  surpasses  all  other  crops  in  the  return  for  the  labor 
expended.  In  the  United  States  such  a  large  area  is  devoted 
to  corn  that  even  a  slightly  increased  yield  per  hectare  gives 
an  aggregate  increase  of  considerable  value.  The  farmers  of 
the  corn  belt  obtain  increased  yields  by  improved  methods 
of  tillage  and  seed  selection.  These  new  methods  and  ideas, 
which  are  worked  out  in  colleges  and  experiment  stations,  are 
brought  to  the  farmers  by  different  means.  Among  the  most 
effective  means  is  that  of  special  railroad  trains,  fitted  up  as 
lecture  halls  and  provided  with  corn  experts,  who  are  thus  sent 
throughout  the  corn-growing  area  to  advise  the  farmers.  Much 
of  the  expense  of  these  trips  is  borne  by  the  railroad  companies, 
who  consider  it  a  good  investment,  since  the  returns  from  the 
increased  amount  of  freight  given  them  by  the  larger  crop  more 
than  recompense  them  for  the  outlay.  Bulletins,  the  introduc- 
tion of  the  study  of  corn  growing  in  the  public  schools,  farmers' 
corn-growing  cooperative  clubs,  and  special  corn  demonstrators 
have  also  been  effective. 

Though  the  total  amount  of  corn  produced  in  the  United 
States  shows  a  steady  increase,  the  demand  keeps  pace  with 
the  supply.  Since  1901  the  world's  production  of  corn  has 
increased  much  faster  than  that  of  other  cereals. 

Importance  in  the  Philippines 

Corn  was  introduced  into  the  Philippines  from  Mexico.  Its 
social  status  in  the  Islands  has  been  low,  for  it  has  generally 
been  known  as  "  poor  man's  rice."    In  1912  the  value  of  the 


66  ECONOMIC  CONDITIONS 

com  crop  was  one  eighth  of  that  of  rice,  but  the  increased 
interest  manifested  in  corn  since  1912  has  resulted  in  greater 
production.  Now  the  people  are  beginning  to  understand  its 
value  as  an  article  of  human  diet  and  as  fodder  for  horses  and 
carabaos ;  and  they  are  coming  to  realize  that  a  large  return  may 
be  expected  from  the  amount  of  seed  planted  even  when  grown 
under  poor  conditions.  In  1917  the  value  of  the  corn  crop 
had  more  than  doubled,  and  was  one  fifth  of  that  of  rice.  The 
following  figures  indicate  the  increasing  area  devoted  to  corn : 


Year                        Hectares 

Year                        Hectares 

1911    ....     302,516 

1915   ....     443,048 

1912    ....     340,916 

1916    ....     432,766 

1913    ....     383,709 

1917   ....     429,293 

1914    ....     421,309 

1918    ....     418,386 

n  certain  districts  of  the  Ph 

ilippines  corn  is  the  chief  f  c 

of  the  people  throughout  the  year.  These  districts  probably 
include  one  fifth  of  tfie  total  population  of  the  Islands.  Unlike 
rice,  corn  demands  a  fairly  porous  soil,  which  will  not  hold 
water.  Hence  the  coralline  limestone  soils  found  on  Cebu,  on 
Siquijor  and  in  Oriental  Negros,  and  in  parts  of  Occidental 
Negros  and  Bohol  are  devoted  to  corn,  and  this  cereal  is  the 
staple  food  in  these  localities.  It  is  also  the  chief  food  crop 
in  the  upper  part  of  the  Cagayan  Valley,  which  is  the  great 
tobacco  region.  Corn  is  planted  there  as  a  second  crop  after 
the  tobacco  has  been  harvested.  In  certain  districts  now  pro- 
ducing export  crops  (for  instance,  parts  of  Misamis)  corn  was 
formerly  the  chief  crop  and  food.  A  scarcity  of  animals  is 
given  as  the  principal  reason  for  the  diminished  cultivation. 

Fish,  meat,  and  beans  supplement  corn,  though  fish  is  prob- 
ably used  to  a  less  extent  in  these  regions  than  in  rice-eating 
districts. 

Corn  may  be  crushed  and  ground  into  coarse  meal  in  prim- 
itive stone  mills  run  by  hand,  in  which  two  or  three  days' 
supply  can  be  prepared  at  one  time.  By  sifting  and  blowing, 
much  of  the  husk  is  removed ;  the  remaining  meal  is  put  into 
a  pot  of  boiling  water  and  cooked  about  fifteen  minutes  (half 


PHILIPPINE  ISLANDS 

CHIEF  FOOD  CONSUMED 

■1    Rice 
^H     Corn 

p^     Tubers 

(Statistics  from  Economio  Reporti, 
Bureau  of  Education) 


V 


Sv    /Formosa 


CHART  IV 


68 


ECONOMIC  CONDITIONS 


the  time  required  for  complete  cooking).  In  the  Cagayan  Val- 
ley the  kernels  are  soaked  for  about  a  minute  and  then  pounded 
in  a  mortar  with  a  pestle,  a  long  task.  By  shaking  and  sift- 
ing, the  large  pieces  of  the  inner  portion  of  the  kernels  are 
separated.  The  finished  product  is  known  as  corn  rice ;  it  is 
usually  cooked  about  half  an  hour  before  being  ready  to  eat. 

It  is  interesting  to  note 
that  in  the  corn-eating 
regions  of  the  Philip- 
pines the  Avealthier  per- 
sons usually  live  on  rice, 
and  that  rice  is  often 
served  by  the  poor  on 
special  occasions.  Never- 
theless, in  certain  regions 
in  which  corn  was  for- 
merly the  chief  food,  but 
in  which  it  is  now  dis- 
placed by  rice  on  account 
of  the  availability  of  rice 
in  exchange  for  export 
crops,  many  of  the  in- 
habitants still  prefer  corn 
and  will  put  themselves 
to  much  inconvenience 
to  procure  it. 

The  importance  of  corn  as  a  supplementary  food  varies  con- 
siderably in  different  parts  of  the  Islands.  In  some  regions, 
such  as  parts  of  northern  Mindanao,  Leyte,  Bohol,  Masbate, 
Batangas,  Bulacan,  and  Abra,  corn  almost  equals  rice  in  the 
amount  consumed.  In  other  regions  it  occupies  a  minor  place 
in  the  diet  of  the  people,  and  in  some  localities  it  is  scarcely 
eaten  at  all.  As  a  supplementary  food,  corn  is  much  grown 
on  hill  lands  in  kaingin,  either  by  itself  or  as  a  catch  crop. 
It  is  sometimes  planted  as  a  catch  crop  with  sugar  cane,  and 
as  a  second  crop  after  sugar  cane  or  rice.    In  many  regions 


CORN  STORED  ON  FRAMEWORK 


CORN  AS  A  FOOD  CKOP  69 

corn  is  planted  in  small  patches  here  and  there  among  main 
crops.  Since  corn  requires  less  moisture  than  lowland  rice 
and  yields  food  in  three  or  four  months  after  planting,  it 
often  becomes  an  important  crop  after  or  during  rice  failure. 
As  a  result  of  the  drought  of  1911-1912,  corn  became  an 
important  crop  in  many  regions  of  the  Philippines,  such  as 
the  Central  Plain  of  Luzon  and  Laguna  Province. 

In  regions  where  corn  is  not  the  chief  food  the  form  in 
which  it  is  usually  eaten  differs  somewhat  according  to  its 
importance  in  the  diet  of  the  people.  In  those  districts  where 
corn  constitutes  the  largest  part  of  the  diet  during  half  the 
year,  it  is  eaten  in  the  forms  previously  explained.  Where  it 
is  of  considerable  importance  throughout  the  year,  it  is  often 
ground  to  a  meal  and  mixed  with  rice  to  make  the  rice  go 
farther.  It  is  consumed  to  give  variety  to  the  regular  diet; 
or  it  is  eaten  between  meals,  boiled  or  roasted  on  the  cob. 
In  a  few  places  the  people  know  how  to  prepare  corn  by 
removing  the  hull.  Parched  corn  is  eaten  throughout  the 
Philippines,  and  is  often  carried  by  travelers. 

In  those  localities  where  little  corn  is  used,  only  one  crop 
is  grown  ;  but  in  most  districts  two  crops,  and,  in  many  regions 
where  corn  is  the  chief  food,  three  crops  are  produced  annually. 

The  cultivation  of  corn  in  the  Philippines  is  as  crude  as  the 
methods  followed  in  the  production  of  rice.  Preparation  of 
the  soil  is  inefficient,  seed  selection  is  lacking,  too  many  stalks 
are  grown  in  a  given  space,  and  fertilizers  are  employed  spar- 
ingly if  at  all.  Corn  is  also  lost  by  the  attacks  of  pests  in  the 
field.  On  an  average  about  fifteen  cavans  of  corn  per  hectare 
are  produced.  In  the  United  States  the  average  yield  per 
hectare  is  thirty  cavans. 

At  the  present  time  corn  is  stored  in  three  ways  in  the 
Philippines :  (1)  the  whole  ear,  including  the  husk,  is  fastened 
to  a  framework  or  to  the  side  of  the  house,  end  down  and 
fully  exposed  to  the  sun ;  (2)  the  ears  are  tied  together, 
thoroughly  cured  in  the  sun^  and  stored  under  the  roof  of  the 
house,  where  smoke  assists  in  protecting  them  from  weevils ; 


70  ECONOMIC  CONDITIONS 

(3)  where  corn  is  not  to  be  kept  very  long  it  is  shelled,  thor- 
oughly dried  in  the  sun,  and  stored  in  large  baskets ;  shelled 
corn,  however,  is  liable  to  attack  by  weevils. 

The  difficulty  of  storing  corn  makes  it  a  crop  to  be  con- 
sumed soon  after  harvest.  This  is  no  slight  discouragement 
to  planting  it. 

Increase  in  Peoduction  and  Use 

The  increased  production  of  corn  in  the  Philippines  is  due 
to  encouragement  of  the  government.^  Reasons  for  promoting 
the  growth  of  corn  are  found  in  the  following  conditions: 

(1)  corn  is  an  excellent  human  food  when  rightly  prepared ;  it 
becomes  an  important  food  crop  where  rice  cannot  be  grown, 
and  as  a  supplementary  food  it  proves  of  great  importance 
in  connection  with  rice  and  durmg  failures  in  the  rice  crop ; 

(2)  on  account  of  the  possibility  of  three  crops  a  year  and  the 
large  yield  per  hectare  corn  is  a  good  crop  to  raise  for  sale ; 

(3)  the  leaves  of  corn  make  excellent  fodder,  the  gathering 
of  which  in  no  way  diminishes  the  yield  of  grain ;  this  is  an 
important  consideration,  for  at  the  present  time  the  Philippines 
are  deficient  in  food  for  stock. 

As  has  been  previously  stated,  no  other  crop  responds  so 
readily  to  intelligent  labor  as  does  corn.  A  few  points  may 
be  briefly  noted: 

1.  The  better  cultivation  of  the  soil  and  the  improvement 
of  implements  necessary  in  producing  rice  (see  pages  42-44) 
are  also  essential  factors  in  the  cultivation  of  corn. 

2.  The  question  of  seed  selection  is  particularly  important 
with  corn,  for  many  of  the  local  problems  may  be  solved  by 
foresight  in  this  matter.    These  problems  are  («)  to  secure  an 

^  The  Bureau  of  Agriculture  met  with  particular  success  along  the  railroad 
in  Panay.  During  September,  1911,  the  railroad  handled  18,000  kilos  of  corn 
from  Iloilo  Province  ;  in  September,  1912,  it  handled  400,000  kilos,  a  gain  of 
more  than  twenty-two  hundred  per  cent.  While  the  increased  yield  in  the 
Islands  during  the  Corn  Campaign  was  partly  artificial,  much  of  the  increased 
area  planted  at  that  time  has  been  continued. 


CORN  AS  A  FOOD  CROP 


71 


increase  in  the  amount  of  corn  grown,  which  will  result  from 
the  production  of  two  ears  on  a  plant  and  a  greater  number 
of  seeds  to  the  ear;  (5)  to  have  the  ear  grow  on  the  lower 
part  of  the  stalk,  and  thus  reduce  the  liability  of  its  being 
destroyed  by  winds;  (c)  to  produce  a  hard  flint  variety 
combined  with  high  yield;  (c?)  to  produce  an  ear  hanging 
downward,  as  a  prevention  to  the  entrance  of  rain. 

3.  Fertilizing  is  very 
important.  Barnyard  ma- 
nure, green  vegetable  mat- 
ter growing  in  the  fields 
and  carefully  turned  under, 
and  commercial  fertilizers 
all  result  in  a  largely  in- 
creased yield. 

4.  Corn  in  the  Philip- 
pines has  always  been 
planted  too  thick.  If  the 
proper  distance  is  main- 
tained between  rows,  and 
between  the  plants  in  the 
row,  a  large  increase  in 
the  yield  can  be  expected. 
The  system  of  growing 
legumes,  such  as  cowpeas, 
green  gram  (mungos),  pea- 
nuts, and  the  like,  between 
the  rows  of  corn  would  also 

tend  to  produce  a  larger  crop  and  to  increase  the  fertility 
of  the  soil.  At  the  present  time  practically  no  rotation  of  crops 
for  preserving  or  increasing  the  fertility  of  the  soil  is  practiced 
in  the  Philippines.  If  corn  were  rotated  with  tobacco,  cow- 
peas,  peanuts,  upland  rice,  and  millet  in  proper  sequence,  the 
exhaustion  of  the  soil  would,  to  a  large  extent,  be  prevented. 
It  has  been  shown  that  corn  planted  without  effort  to  obtain 
the  best  results  yielded  from  a  given  area  ten  and  a  fourth 


A  PLOT  OF  CORN 


72  ECONOMIC  CONDITIONS 

pounds  of  seed ;  that  corn  on  the  same  area,  when  planted 
regularly  in  rows  a  half  meter  apart  and  frequently  cleaned 
and  hoed,  gave  about  six  times  the  amount  of  the  first  crop ; 
and  that  corn  again  on  the  same  area,  when  planted  in  rows 
a  meter  apart  and  given  the  same  cultivation,  produced  more 
than  nine  times  the  amount  of  the  first  crop.^ 

Improvements  in  the  method  of  preparing  corn  will  also 
result  in  a  greater  appreciation  of  it  as  food.  As  a  substitute 
for  the  crude  stone  mill,  there  have  recently  been  imported 
small  steel  mills.  The  cheapness  of  these  renders  it  possible 
to  place  them  in  every  small  community  if  not  in  every  house- 
hold. If  corn  is  to  be  elevated  from  its  lowly  position  as  ''  poor 
man's  rice,"  the  people  must  understand  more  thoroughly 
the  methods  by  which  palatable  foods  may  be  prepared  from 
it,  and  the  necessity  of  longer  cooking.  This  matter  has  re- 
ceived attention  and  publicity ;  with  the  increased  production 
of  corn  already  noted,  there  has  been  an  increased  use  of  it 
as  a  supplementary  food,  and,  to  a  smaller  extent,  as  a  chief 
food  in  connection  with  fish,  beans,  and  other  products  high 
in  protein. 

The  great  problem  which  confronts  the  small  producer 
of  corn  in  the  Philippines  is  to  obtain  better  and  cheaper 
methods  of  preserving  the  grain  over  a  longer  period  of  time 
than  is  now  practicable.  Treatment  with  carbon  disulphide 
(much  practiced  in  the  United  States)  is  impracticable  here 
on  account  of  the  inflammable  nature  of  the  gas.  It  would 
seem  that  unless  some  herb  or  other  simple  insecticide  is  found, 
the  evolution  of  a  hard  flint  variety  of  the  grain  is  the  only 
practicable  solution  of  the  difficulty.  For  commercial  purposes 
large  amounts  of  shelled  corn  may  be  protected  by  means  of 
carbon  disulphide. 

1  Agricultural  Review,  Vol.  Ill,  No.  8. 


CORN  AS  A  FOOD  CROP  73 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  What  are  the  points  against  extensive  production  of  corn  in 
the  Philippines  ?  2.  Where  is  it  used  as  the  chief  food  ?  Why  ? 
3.  What  is  its  place  in  the  diet  of  the  people  in  other  parts  of  the 
Islands  ?  4.  Explain  the  chief  problems  of  producing  and  market- 
ing corn  in  the  Philippines.  5.  If  all  the  Filipinos  should  sud- 
denly substitute  corn  for  rice,  what  would  be  the  effect  on  the 
economic  condition  of  the  country  ?  6.  Is  such  a  change  desirable? 
7.  State  the  comparative  food  values  of  corn  and  rice. 

Suggestions  fok  the  Study  of  Local  Conditions 
1.    Corn  as  a  crop  and  as  a  food.   2.  Varieties  of  corn  recognized. 

Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  From  the  latest  "  Statistics  on  Principal  Crops  of  the  Philip- 
pine Islands  "  prepare  a  chart  representing  the  amount  of  corn  pro- 
duced in  the  Philippines.  2.  Divide  it  into  sections  representing 
the  production  of  the  chief  corn-producing  provinces.  3.  Compare 
these.    4.  Explain  the  causes  for  the  heavy  production  of  corn. 

5.  The  world's  corn  industry.^ 

6.  The  relation  between  the  corn  and  the  hog  industry  of  the 
United  States.-^ 

7.  Make  and  explain  a  chart  of  the  uses  of  corn. 

8.  The  cereal  foods  of  the  world :  where  they  are  grown  and 
used ;  comparative  production ;  comparisons  with  those  of  the 
Philippines ;  international  trade ;  which  are  or  can  be  grown  in 
the  Philippines ;  why  the  others  cannot  be  grown.^ 

9.  Make  and  explain  charts  showing  the  uses  of  wheat,  rye, 
oats.^ 

1  See  Finch  and  Baker  ;  Miller  ;  Toothaker  ;  Bishop  and  Keller. 


CHAPTER  IV 
LESSER  FOOD  CROPS 
Supplementary  Foods 

While  rice  or  corn  is  the  chief  food  in  nearly  all  parts  of 
the  Philippines,  certain  other  crops  are  supplementary. 

The  sweet  potato  is  widely  used  as  an  important  supple- 
mentary food  to  rice ;  indeed,  in  certain  inland  mountainous 
regions  of  the  Islands  it  is  the  chief  food.  The  cultivation  of 
this  crop  by  the  Igorots,  on  account  of  the  lack  of  suitable  rice 
lands  in  their  country,  has  already  been  noted  (see  Chapter  I). 
The  same  reason  for  its  cultivation  holds  among  the  Filipinos 
also.  In  the  Batan  Islands  sweet  potatoes  and  other  roots  and 
tubers  constitute  the  chief  crops,  not  only  because  ground 
suitable  for  rice  is  not  obtainable,  but  because  the  high  winds 
which  accompany  the  frequent  typhoons  destroy  or  badly 
damage  the  vegetation. 

The  social  position  of  the  sweet  potato  in  the  Philippines 
is  much  lower  than  that  of  corn.  To  say  "  They  live  on 
camotes  "  indicates,  in  most  regions,  a  state  of  abject  poverty. 

The  nutritive  value  of  the  sweet  potato  lies  almost  entirely 
in  its  starch,  the  protein  and  fat  being  negligible.  The  amount 
of  sugar  in  the  Philippine  camote  is  small.  Beans,  fish,  or 
other  foods  high  in  protein  should  be  eaten  with  the  camote. 

In  many  regions,  particularly  where  it  is  the  chief  food,  the 
camote  is  planted  in  separate  fields.  It  is  often  grown  as  a 
second  crop  after  rice,  or  as  a  catch  crop  between  other  plants. 
No  attempt  is  made  to  cultivate  carefully  or  to  improve  this 
root.  As  a  general  food,  the  sweet  potato  attains  its  greatest 
importance  just  before  rice  planting.  At  all  times  of  the  year 
it  is  eaten  between  meals. 

74 


LESSEE  FOOD  CROPS  75 

Of  the  numerous  species  of  yams,  several  are  found  wild  or 
cultivated,  and  are  probably  the  second  most  important  sup- 
plementary food.  These  roots  are  sold  in  nearly  all  markets 
of  the  Islands ;  their  place  in  the  diet  of  the  people  is  much 
the  same  as  that  of  the  sweet  potato.  In  certain  localities  they 
are  used  with  sweet  potatoes  as  the  chief  food,  but  in  most 
places  their  value  is  purely  supplementary,  in  varying  degrees. 
The  yams  are  peculiarly  immune  to  the  effects  of  drought 
and  are  therefore  excellent  dry-season  crops.  Their  food  value 
lies  almost  entirely  in  their  starch. 

Taro  is  found  in  all  markets.  This  root,  however,  is  nowhere 
a  principal  or  even  an  important  food.  Since  its  cultivation 
requires  considerable  moisture,  it  cannot  be  advantageously 
grown  during  the  dry  season  except  along  streams.  It  is  a 
starchy  food. 

The  value  of  cassava  roots  as  food  is  not  well  understood 
in  the  Philippines  in  general.  In  the  Sulu  Archipelago  cas- 
sava is  the  chief  food ;  in  other  parts,  however,  it  is  seldom 
used  except  in  times  of  great  need.  Among  other  supple- 
mentary food  crops  may  be  mentioned  the  arrowroots,  the 
millets,  the  beans,  and  the  palm  starches,  but  the  amounts  of 
these  consumed  in  comparison  with  the  foods  noted  above  are 
small  indeed. 

Foods  of  Luxury 

Foods  of  luxury  raised  and.  eaten  by  the  Filipinos  are  not 
numerous,  nor  of  great  quantity.^  The  most  important  are  the 
fruits.  In  the  Philippines  there  is  practically  no  cultivation 
of  fruit,  no  orchards  or  organized  systems  of  obtaining  and 
disposing  of  fruit.  The  trees  are  simply  allowed  to  grow, 
and  the  product  is  gathered  when  ready.  There  is  not  a  fruit 
grown  in  the  Philippines  the  yield  of  which  could  not  be 
increased  in  quality  and  in  quantity  by  careful  propagation 
and  cultivation.    Mangoes  are  produced  generally,  and  are 

1  Luxuries  include  foods  eaten  not  for  their  nutritive  value  particularly, 
but  as  relishes  at  or  between  meals. 


76  ECONOMIC  CONDITIONS 

exported  from  certain  favorable  localities  in  large  quantities. 
During  a  short  season  mandarins  ^  are  sent  from  the  groves  of 
Batangas  and  two  or  three  small  centers.  Lansones,  which 
grow  here  and  there  in  the  Archipelago,  are  exported  princi- 
pally from  southwestern  Luzon.  Pineapples,  chicos,  guavas, 
tamarinds,  papayas,  and  other  fruits  are  produced  locally  and 
enter  trade  to  a  small  extent.^  Of  these  the  papaya  is  the 
most  utilized.  In  general,  fruits  contain  but  little  nourishment 
in  comparison  with  their  bulk ;  this  nourishment  consists 
usually  of  sugars.  Fruits  aid  and  stimulate  digestion  rather 
than  give  nourishment  to  the  body.  In  the  Philippines  green 
fruit  is  preferred,  and  consequently  the  nourishment  which  is 
developed  in  the  ripe  fruit  is  lost. 

Unlike  most  fruits,  however,  the  banana  contains  a  large 
amount  of  nutrition  and  has  a  distinct  food  value,  especially 
when  cooked.  The  place  of  the  banana  in  the  diet  of  the 
Filipinos  is  peculiar,  and  varies  with  the  kind  of  fruit  and 
the  locality.  The  best  kinds  of  bananas  are  considered  luxu- 
ries for  the  table  of  the  well-to-do,  and  bring  a  relatively  high 
price  in  all  parts  of  the  Archipelago.  The  commoner  varieties 
are  the  chief  food  in  a  few  barrios^  throughout  the  year  or 
during  a  large  part  of  it.  Probably  in  half  the  municipalities 
of  the  Philippines  the  banana  is  a  recognized  supplementary 
food,  and  enters  into  the  diet  of  the  people  as  largely  as  do 
the  root  crops  and  corn.  In  the  other  municipalities  even  the 
inferior  varieties  are  considered  luxuries,  and  very  few  are 
eaten.  The  cause  of  this  great  difference  in  the  use  of  the 
banana  lies  in  the  madequate  local  production,  which  is  due 
to  neglect  or  unfavorable  location.  In  no  place  in  the  Philip- 
pines is  the  demand  for  bananas  fully  met.  About  Manila, 
Cebu,  and  Iloilo  there  is  a  small  trade  in  the  fruit,  and  the 
fruit  is  found  in  the  markets  of  most  towns.    The  largest 

1  Known  locally  as  the  Batangas  orange. 

2  For  discussion  of  these  fruits  see  "  Commercial  Geography,  the  Materials 
of  Commerce  for  the  Philippines,"  by  Miller,  Bureau  of  Education,  Manila. 

*  The  Philippines  are  divided  politically  into  provinces,  municipalities, 
and  barrios. 


LESSER  FOOD  CROPS  77 

supply  which    the    provincial   householders   possess  is   that 
obtained  from  plants  grown  in  their  own  yards. 

Other  domestic  luxuries  consumed  by  the  Filipinos  are 
sugar,  onions,  garlic,  coffee,  chocolate,  buyo  (betel),  tobacco, 
and  certain  fermented  drinks  such  as  palm  saps  (tuba)  and 
basi.  Sugar  enters  the  composition  of  numerous  sweetmeats 
(dulces)  made  from  other  foods  already  mentioned  and  the 
meat  of  the  coconut.  Garlic  and  onions  are  greatly  appre- 
ciated for  flavoring  foods.  With  those  who  have  the  means 
coffee  or  chocolate  is  drunk  with  the  morning  meal,  and  choco- 
late in  the  afternoon.  The  smoking  of  tobacco  is  a  luxury 
freely  indulged  in  by  all  classes.  The  chewing  of  buyo,  how- 
ever, seems  to  be  growing  less.  The  wide  consumption  of 
distilled  liquors  will  be  discussed  in  another  place.  Fermented 
juices  are  also  important.  In  the  Visayas  immense  quantities 
of  fermented  coconut  sap  are  drunk,  and  among  the  Ilocanos 
fermented  sugar-cane  juice  (basi)  is  used  by  all  classes.  A 
small  amount  of  fermented  nipa  sap  is  consumed  near  exten- 
sive swamps  covered  with  nipa  palms. 


Famine  Foods 

In  the  discussion  of  the  chief  food  crops  it  has  been  inti- 
mated that  famines  sometimes  occur  in  the  Philippines.  This 
term,  however,  is  almost  too  strong  to  apply  to  any  conditions 
found  in  the  Islands.  It  usually  suggests  periods  in  India 
and  China  when  thousands  die  from  want  of  food.  Such  a 
condition,  however,  is  not  even  approached  in  the  Philippines. 
In  the  worst  times  a  few  hundred  persons,  mostly  old  people 
and  children,  may  die  of  malnutrition.  The  Philippines  are 
not  densely  populated,  and  in  times  of  necessity  the  people 
can  resort  to  wild  foods.  Two  different  conditions  of  famine 
should  be  noted :  (1)  annual  seasons  of  restricted  diet  result- 
ing from  too  small  production  of  food ;  and  (2)  extraordinary 
times  of  food  scarcity  caused  by  unusual  drought,  storms,  or 
epidemics. 


78  ECONOMIC  CONDITIONS 

During  the  regular  annual  periods  of  food  scarcity  which 
occur  in  certain  backward  communities,  it  is  customary  to 
make  the  chief  food  go  farther  by  adding  less  appreciated 
foods.  Thus  m  rice-eating  regions  ground  corn  is  added  to 
the  morisqueta,^  and  more  root  crops  are  consumed.  Li  corn- 
consuming  regions  the  people  resort  to  cultivated  roots  and 
even  to  wild  roots  and  starches  from  wild  palms.  In  the  most 
backward  communities  the  coarsest  forms  of  wild  food  sup- 
plement the  chief  diet.  In  these  localities  the  period  of  famine 
is  a  time  of  real  want,  when  the  hunger  belt  must  be  drawn 
tight.  Such  annual  periods  of  food  scarcity  occur,  of  course, 
only  in  the  less  progressive  and  poorer  districts  of  the  Philip- 
pines, but  they  are  of  sufficient  importance  to  be  noted  as  a 
condition,  and  not  as  an  exception. 

From  time  to  time  extraordinary  periods  of  restricted  food 
supply  occur  in  certain  localities  or  throughout  the  Islands. 
In  the  most  advanced  and  richest  regions,  in  which  there  is 
diversity  of  production  (as  Laguna  and  Pangasinan),  or  where 
the  land  is  given  over  to  a  successful  export  crop  (as  the 
present  coconut  region  of  Tayabas),  drought  has  no  serious  ill 
effect  on  the  people.  But  where  the  population  .is  dependent 
on  one  food  crop  or  on  an  export  crop  which  brings  a  low  price, 
the  effect  of  curtailment  in  food  is  often  keenly  felt.  Here 
again  the  results  of  the  famine  depend  on  the  character  of 
the  population.  In  the  least  civilized  parts  of  the  Philippines 
the  people  take  to  the  hills  and  live  on  roots  and  other  wild 
food  until  they  can  plant  and  harvest  another  crop.  In  more 
advanced  localities  the  people  resort  to  less  appreciated  foods. 
In  rice-producing  regions  corn  is  usually  planted,  since  it 
furnishes  food  more  quickly  than  rice  and  requires  less  water. 
In  many  parts  of  the  Islands  more  yams  and  vegetables  are 
also  eaten  at  such  times.  The  most  important  sources  of  nour- 
ishment during  the  scarcity  of  cultivated  foods  are  the  palm 
starches.  In  some  places  palm  starches  are  regularly  included 
in  the  diet,  such  as  buri  starch  on  the  Bondoc  Peninsula,  the 

1  Boiled  rice. 


LESSER  EOOD  CROPS  79 

starch  of  the  sugar  palm  in  Mmdoro,  and  the  starch  of  the 
sago  palm  in  the  northeastern  portion  of  the  Agusan  Valley. 
But  for  the  Philippines  in  general  the  palm  starches  may  be 
considered  foods  of  necessity,  used  only  in  times  of  scarcity. 
In  coconut  regions  tuba  is  drunk  to  a  larger  extent  during 
food  shortage  ;  taken  with  a  little  rice  and  fish,  or  corn  and  fish, 
in  the  middle  of  the  day,  it  sustains  life  until  the  next  harvest. 

New  Food  Crops 

Certain  food  crops  which  are  now  seldom  or  never  produced 
in  the  Philippines  deserve  much  greater  attention  than  they 
receive. 

Among  these  the  most  important  is  beans.  Three  general 
classes  of  food  are  recognized  as  necessary  for  the  proper 
nourishment  of  the  body:  the  carbohydrates,  which  are  ob- 
tained from  starches  and  sugars;  the  proteids,  which  are 
found  in  fish,  meats,  beans,  and  the  like ;  .and  the  fats,  which 
may  be  either  animal  or  vegetable.  The  diet  of  the  Filipinos 
is  plentifully  supplied  with  fats  from  pork  and  coconut  oil, 
which  are  eaten  universally.  The  proportion  of  starchy  foods 
consumed  by  the  Filipinos  is  too  great.  Rice  and  roots  are 
almost  entirely  starch.  Corn  contains  a  considerable  amount 
of  protein,  but  is  essentially  a  starchy  food.  At  the  present 
time  protein  is  supplied  largely  by  fish,  to  a  less  extent  by 
meat,  and  to  a  still  less  extent  by  beans.  In  certain  localities 
(particularly  on  the  island  of  Panay  and  among  the  Ilocanos) 
beans  are  a  notable  feature  of  the  daily  food.  Yet  even  in 
these  places  the  nutritive  value  of  beans  in  connection  with 
rice  is  not  well  understood.  The  chief  reason  for  eating  beans 
is  that  they  can  be  grown  between  main  crops.  For  the  Philip- 
pines in  general  beans  are  used  much  too  sparingly.  The  varie- 
ties found  in  the  small  stores  and  markets  of  most  towns  are 
principally  imported  from  China.  Those  grown  by  individuals 
are  consumed  by  the  family  or  in  the  immediate  locality, 
except  in  a  very  few  cases,  as  in  Ilocos  Norte,  Pangasinan, 
and  Antique,  from  which  beans  are  exported. 


80 


ECONOMIC  CONDITIONS 


The  most  important  varieties  of  beans  grown  in  the  Philip- 
pines are  tlie  cowpea,  which  is  usually  eaten  green ;  the  lima 
bean,  which  is  found  both  wild  and  cultivated  ;  and  the  green 
gram,  which  is  the  most  important  of  the  local  beans,  and 
which  is  valued  for  its  dried  seeds.  All  these  varieties  are 
rich  in  protein.  The  use  of  beans  in  crop  rotation  with  starch- 
producing  plants  is  not  understood  in  the  Philippines.  The 
cultivation  of  beans  in  connection  with  rice,  corn,  and  root 


A  VEGETABLE  GARDEN 

crops  would  improve  agricultural  conditions  and  furnish  the 
necessary  protein  to  the  diet  of  the  people.  The  present  vari- 
eties grown  are  suitable,  but  others  might  be  introduced. 
Recently  the  world  has  taken  interest  in  the  soya  bean,  which 
is  produced  and  eaten  in  large  quantities  in  China,  Japan,  and 
India.  This  bean  is  a  prolific  source  of  oil  in  these  countries 
and  in  Europe,  and  its  general  food  value  is  becoming  rec- 
ognized to  an  ever-increasing  extent.  It  is  unusually  rich  in 
fat  and  protein,  and  contains  practically  no  starch.  The  soya 
bean  is  not  well  known  in  the  Islands,  although  quantities 
are  imported  from  China  and  made  mto  bean  cakes  or  curds, 


LESSEE  FOOD  CROPS 


81 


an  excellent  food,  which  is  popular  in  the  larger  cities  of  the 
Philippines.  The  bean  would  be  a  good  addition  to  the  crops 
and  foods  of  the  Filipinos. 

The  diet  of  the  Filipinos  is  deficient  in  fresh  vegetables  also. 
After  all,  variety  in  diet  is  largely  a  matter  of  habit,  and  the 
customs  of  the  Filipinos  have  been  such  as  to  eliminate  almost 


AN  EXHIBIT  OF  VEGETABLES  FROM  SCHOOL  GARDENS 
Results  of  propaganda  on  vegetables 

all  fresh  vegetables  except  greens  from  their  table.  Near  most 
houses  there  is  a  large  space  where  a  vegetable  garden  can 
easily  be  maintained,  the  product  of  which  would  be  important 
not  only  in  giving  variety  to  diet,  but  in  serving  as  food  in 
times  of  scarcity.  The  schools  in  all  parts  of  the  Islands  have 
taken  up  with  great  earnestness  the  planting  of  school  and 
home  gardens.  In  1917-1918,  according  to  the  report  of  the 
Director  of  Education,  there  were  4023  school  gardens  and 


82  ECONOMIC  CONDITIONS 

103,668  home  gardens.  In  nearly  all  towns  there  is  a  notice- 
able increase  in  the  number  of  gardens  about  the  houses,  and 
in  the  amount  of  fresh  vegetables  eaten. ^ 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  Vegetables  as  an  important  factor  in  the  national  diet. 

2.  What  constitutes  a  food  of  luxury  in  the  Philippines  ? 
3.  Under  what  conditions  do  foods  of  luxury  become  common 
foods  ?  4.  Under  what  conditions  do  common  foods  become 
foods  of  luxury  ?  5.  Suggest  a  method  of  introducing  new  foods 
into  a  country.  6.  What  conditions  render  such  a  plan  advisable  ? 
necessary  ?  7.  Should  any  effort  be  made  to  reduce  some  of  the 
present  foods  of  luxury  to  the  level  of  common  foods  ?  8.  If  so, 
how  would  you  develop  this  effort  ? 

Suggestions  for  the  Study  of  Local  Conditions 

1.  Chief  and  supplementary  foods.  2.  Foods  of  luxury.  3.  Foods 
used  during  periods  of  scarcity.  4.  New  foods  that  might  be 
introduced. 

5.  A  study  of  local  bananas  with  respect  to  uses  and  quality 
(cooking,  eating  of  various  grades,  vinegar)  ;  keeping  and  shipping 
qualities. 

6.  Local  fruits  and  their  varieties.  7.  Those  that  might  be 
produced  commercially. 

8.  Has  the  consumption  of  vegetables  increased  ? 

Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  Philippine  commercial  fruits.  2.  Where  they  are  produced 
commercially.  3.  Some  problems  connected  with  their  production 
and  marketing.  4.  Orchards.  5.  Possibilities  of  exporting  fresh 
fruit  from  the  Philippines.  6.  The  import  of  fresh  and  preserved 
fruits.  7.  Fruits  that  might  be  introduced  into  the  Islands.  (Miller.) 

1  For  a  summary  of  the  chapter  on  food  crops,  see  Chapter  XIII  under 
the  heading  The  Standard  of  Living  (page  286.) 


LESSER  FOOD  CROPS  83 

8.  Growing,  marketing,  and  preserving  fruits  and  vegetables. 
9.  The  industries  in  the  United  States.  (Finch  and  Baker ;  Bishop 
and  Keller.)  10.  Lists  of  imported  dried  and  preserved  fruits  and 
vegetables  found  in  Philippine  stores.  11.  Philippine  fruits  and 
vegetables  in  relation  to  their  possibilities  of  being  preserved 
commercially. 

12.  Make  and  explain  a  chart  of  the  uses  of  the  banana. 

13.  The  white  potato :  its  cultivation  and  use.  (Finch  and 
Baker.)  14.  Imports  into  the  Philippines.  15.  The  cultivation 
and  use  of  camotes  and  other  root  crops  in  the  Philippines. 

16.  The  banana :  its  cultivation  and  commercial  uses.  (Miller.) 

17.  Citrus  fruits.    (Miller ;  Finch  and  Baker.) 

18.  The  school  gardens  of  the  Philippines :  a  review  of  the 
efforts  made  and  the  work  accomplished. 

19.  The  value  of  beans  as  food. 

20.  Possibilities  of  producing  cassava  and  sago  in  the  Philip- 
pines. 

21.  The  production  and  consumption  of  cassava  in  Brazil. 

22.  Periods  of  famine  in  India  and  China.  23.  Their  causes 
and  effects.    24.  Remedies. 

25.  Periods  of  scarcity  in  the  Philippines.  26.  Their  causes. 
27.  Foods  eaten  during  times  of  scarcity.  28.  Prevention  of 
these  periods. 

29.  The  World  War,  and  the  food  problem  in  Great  Britain, 
France,  and  the  United  States.    30.  How  the  problem  was  solved. 

31.  Vegetable  foodstuffs  imported  into  the  Philippines. 

32.  The  food  supply  of  the  United  States.  (Finch  and  Baker ; 
Bishop  and  Keller.) 


CHAPTER  V 
ABACA  AS  AN  EXPORT  CROP 

The  food  crops  of  the  Philippines  are  produced  for  consump- 
tion in  the  Islands.  With  the  exception  of  rice  they  hardly 
enter  commerce.    Even  rice  is  sent  from  only  a  few  districts. 

The  export  crops,  on  the  other  hand,  are  grown  almost 
entirely  for  use  in  foreign  countries,  only  a  small  part  of  each 
being  consumed  in  the  Islands.  In  exchange  for  these  crops 
there  are  brought  into  the  Philippines  (1)"  necessary  articles 
which  cannot  be  made  here,  or  which  can  be  produced  more 
cheaply  in  foreign  countries,  such  as  iron  and  steel  goods 
and  cotton  cloth ;  (2)  food,  such  as  rice ;  and  (3)  luxuries, 
such  as  preserved  foods,  phonographs,  shoes,  and  books.  It  is 
probable  that  the  export  crops  equal  in  value  those  raised 
for  local  consumption. 

History  of  Abaca 

For  many  years  the  most  important  export  from  the  Philip- 
pines has  been  Manila  hemp.  The  fiber-producing  qualities  of 
the  species  of  Musa,  called  in  the  native  languages  abaca,  was 
well  known  to  the  Filipinos  long  before  the  days  of  Spanish 
occupation.  When  Magellan  arrived  at  Cebu,  the  weaving  in- 
dustry was  already  widespread.  Levariza  (1569)  spoke  of  the 
great  quantities  of  colored  abaca  cloths  woven  in  the  present 
province  of  Albay.  Since  the  weaving  and  the  use  of  the  cloth 
were  general  among  the  natives,  the  Spanish  government  made 
the  cloth  legal  tender  for  the  payment  of  taxes.  However, 
although  weaving  was  a  common  household  industry,  this 
peculiar  form  of  money  was  not  easily  obtained,  and  long  argu- 
ments concerning  the  hardship  of  paying  the  taxes  appeared 
from  time  to  time  in  letters  written  to  the  Spanish  king. 

84 


ABACA  AS  AN  EXPORT  CROP        85 

In  ancient  times  the  fiber  was  obtained  from  the  wild  plant. 
The  cultivation  of  abaca  was  not  begun  until  the  early  part 
of  the  nineteenth  century  ;  some  abaca  was  exported  in  1818. 
In  1824  the  fiber  was  used  extensively  in  New  England  ship- 
yards. The  amount  of  abaca  exported,  however,  was  not 
large  until  the  latter  part  of  the  century.  From  1850  to  the 
present  time  production  and  export  have  increased  rapidly ; 
Figure  I  on  Chart  VI  shows  the  increased  volume  of  export 
from  1877  to  1918,  inclusive. 

The  popularity  of  abaca  in  the  regions  in  which  it  can  be 
grown  1  is  probably  due  to  the  following  facts:  it  is  not 
attacked  by  pests,  such  as  locusts  (which  are  destructive  to 
rice  and  other  crops),  nor  by  any  serious  fungous  diseases; 
it  resists  drought  fairly  well ;  not  much  labor  need  be  expended 
on  its  cultivation,  since  it  thrives  in  competition  with  other 
plants.  Moreover,  it  has  no  particular  season  for  harvest,  and 
the  laborers  have  more  or  less  steady  work  throughout  the  year. 

Large  and  Small  Producers 

In  parts  of  the  Philippines  the  fiber  is  still  obtained  from 
uncultivated  varieties,  although  this  product  is  uiferior  to  that 
stripped  from  cultivated  plants.  In  the  older  abaca  districts 
the  holdings  are  usually  small,  consisting  at  the  most  of  a  few 
thousand  hills.  These  holdings  are  sometimes  owned  by  the 
men  who  strip  the  fiber,  and  sometimes  by  the  people  who 
live  in  the  lowlands.  Such  small  holdings  are  probably  the 
result  of  local  scarcity  of  labor  and  the  general  immobility  of 
labor.  They  also  result  from  giving  one  family  the  care  of 
just  the  number  of  plants  it  can  cultivate  and  harvest.  The 
small  owners  and  producers  are  nearly  always  economically 
dependent  on  certain  provincial  abaca  buyers.  Through  ad- 
vances of  money  or  food  these  buyers  control  the  disposal  of 
the  debtors'  product.     The  owners  of  several  thousand  hills 

1  See  Miller's  "Commercial  Geography,  the  Materials  of  Commerce  for 
the  Philippines." 


86  ECONOMIC  CONDITIONS 

are  in  a  much  better  position,  and  are  usually  independent  of 
all  buyers.  In  many  of  the  newer  abaca  regions  there  are 
plantations  of  more  than  a  hundred  thousand  hills,  the  owners 
usually  being  corporations,  which  are,  of  course,  independent 
as  to  the  disposal  of  their  fiber. 

Stripping 

The  amount  of  labor  involved  in  planting  abaca  and  in 
cultivating  the  plot  (late)  or  hacienda  is  comparatively  small, 
but  for  the  Islands  as  a  whole  sufficient  labor  to  strip  the 
fiber  from  the  petiole  has  never  been  available.  Most  of  the 
fiber  is  obtained  by  the  laborious  process  of  pulling  the  petiole 
under  a  knife  by  hand,  as  shown  on  page  101.  This  process 
requires  not  only  great  dexterity  but  great  strength.  The 
problem  of  the  owner,  therefore,  is  to  find  sufficient  labor  to 
strip  his  fiber.  The  wages  of  strippers  usually  consist  of  a 
certain  share  of  the  product.  Formerly  this  share  was  one 
third,  but  for  several  years  it  has  been  one  half  of  the  fiber 
obtained.  In  certain  places  in  which  labor  was  particularly 
scarce,  and  which  were  particularly  hard  hit  by  the  slump  in 
prices  of  a  few  years  ago,  even  more  than  a  share  of  one  half 
has  been  given  the  strippers,  but  on  condition  that  they  do 
the  cultivating  also.  It  is  considered  obligatory  on  the  stripper 
to  sell  his  share  to  the  owner  of  the  plantation  so  long  as  the 
latter  pays  a  reasonable  price  for  it,  this  price  being  slightly 
less  than  that  of  the  open  market.  Hence,  in  the  end,  the 
total  product  of  the  plantation  usually  passes  into  the  hands 
of  the  owner.   In  a  few  large  plantations  daily  wages  are  given. 

In  1903  a  hemp  stripper  with  helper  could  earn  from  P2 
to  P2.50  a  day.i  At  the  low  prices  of  1911,  however,  a  laborer 
and  helper  could  not  make  more  than  half  that  amount.  In 
1918  strippers  averaged  about  P4.50  a  day.  Because  of  the 
laboriousness  of  stripping,  it  is  not  customary  for  the  strip- 
pers to  work  continuously.  They  usually  strip  hemp  three 
days  a  week  and  devote  the  other  three  days  to  cleaning 
1  Bulletin  5S,  Bureau  of  Labor,  Washington,  D.C. 


ABACA  AS  AN  EXPORT  CROP        87 

the  late.  Hence,  no  matter  what  the  price  is,  the  strippers' 
average  annual  income  is  probably  no  higher  than  that  of 
laborers  working  in  other  agricultural  pursuits. 

The  strippers  in  most  abaca  districts  are  dependent  on  the 
crop  for  a  living,  and  usually  dwell  with  their  families  on  the 
lates.  They  themselves  do  not  raise  any  food  crops  or  domes- 
tic animals  suitable  for  food,  nor  are  they  encouraged  to  do 
so  by  the  men  who  hire  them.  This  condition,  as  we  shall  see 
later,  results  in  an  exodus  of  strippers  from  the  abaca  fields 
to  the  rice  fields,  or  to  other  industries,  when  the  price  of  the 
fiber  is  so  low  that  stripping  does  hot  yield  a  good  living. 

Transportation 

Another  important  consideration  in  the  production  of  abaca 
fiber  is  that  of  transportation.  Usually  the  abaca  lates  are  in 
the  hills,  and  the  cost  of  getting  the  fiber  to  the  coast,  if  river 
transportation  is  not  available,  is  often  a  difhcult  matter.  When 
the  price  of  abaca  was  high,  as  in  1903-1906  and  in  1918 
(see  Chart  VI),  the  strippers  could  afford  to  carry  the  product 
by  horse  or  carabao,  or  even  on  their  own  backs,  over  trails 
or  across  mountains  to  the  nearest  coast  towns  to  exchange 
for  rice  and  cloth.  From  these  places  it  was  taken  to  Manila 
or  Cebu  for  shipment  to  foreign  countries.  When  the  price 
of  abaca  fell,  however,  strippers  no  longer  obtained  sufficient 
goods  for  their  load  to  warrant  carrying  the  fiber  to  market, 
and  many  interior  regions,  such  as  the  mountains  of  Samar 
and  the  Bukidnon  country  of  Mindanao,  practically  ceased  to 
export.  In  general,  when  the  price  is  low,  much  abaca  goes 
to  waste  on  the  stalk  in  those  regions  from  which  transporta- 
tion to  the  market  is  expensive. 

Quality 

The  quality  of  abaca  fiber  is  an  important  consideration, 
and  can  be  controlled  in  the  stripping.  The  abaca  exported 
from  the  Philippines  has  deteriorated  greatly;  this  is  made 


88  ECONOMIC  CONDITIONS 

plain  by  a  comparison  of  the  exports  of  1881  with  those  of 
1903  (as  reported  by  a  certain  firm).  This  comparison  has 
been  given  in  graphic  form  in  Chart  V.  It  will  be  seen  that 
by  1903  the  second  grade,  which  composed  61.8  per  cent  of 
the  product  of  1881,  had  almost  disappeared ;  that  the  largest 
part  was  fourth  grade,  very  little  of  which  had  been  produced 
in  1881 ;  and  that  a  new  or  fifth  grade  was  being  largely  pro- 
duced. The  general  quality  of  the  fiber  has  become  even  lower 
since  1903.  This  lowering  in  quality  results  from  (1)  the  use 
of  serrated  knives,  which  give  a  larger  yield  with  less  effort, 
but  which  obtain  a  coarse  abaca  discolored  by  pulp  ;  (2)  delay 
in  stripping  the  separated  petioles ;  and  (3)  careless  drying, 
due  to  the  neglect  on  the  part  of  the  strippers  in  not  imme- 
diately placing  the  fiber  in  the  sun  to  dry,  and  in  not  protect- 
ing it  from  the  rain  or  other  forms  of  moisture  which  cause 
discoloration  and  reduce  the  strength  of  the  fiber.  These 
causes  tend  to  produce  coarse,  spotted-brown  fiber  of  uneven 
strength,  instead  of  the  long,  soft,  white  fiber  uniformly  cleaned 
and  having  uniform  strength.  It  is  said  that  in  former  times 
it  was  customary  for  the  authorities  to  burn  inferior  fiber 
to  discourage  its  production ;  for  they  maintained  that  the 
marketing  of  the  lower  grades  injured  the  reputation  of 
abaca  fiber,  and  lessened  the  demand  for  it  in  the  world's 
markets  by  inviting  competition  from  inferior  rope  fibers. 

However,  the  local  provincial  buyers  also  have  been  held 
responsible  for  the  production  of  lower  grades  of  fiber  in  the 
Philippines.  In  1903,  during  cleaning  experiments  made  at 
Gubat,  Sorsogon,!  it  was  shown  that  during  the  first  hour  one 
and  a  half  kilos  of  high-grade  fiber  valued  at  seventy  centavos 
could  be  produced  with  a  smooth-edged  knife,  and  about  three 
kilos  could  be  cleaned  with  a  serrated  blade,  the  value  of 
the  latter  being  ninety-four  centavos.  At  wages  of  half  the 
product,  therefore,  the  stripper  obtained  thirty-five  centavos 
an  hour  by  stripping  the  high-grade  fiber,  and  forty-seven 
centavos  an  hour  by  stripping  the   lower-grade  material,  a 

1  Bulletin  58,  Bureau  of  Labor,  Washington,  D.  C. 


ABACA  AS  AN  EXPORT  CROP 


89 


1881 


1903 


difference  of  twelve  centavos  an  hour.  In  other  words,  the 
provincial  middlemen  took  large  profits  from  the  higher  grades, 
and  reasonable  profits  from  the  lower  grades.  As  a  result,  the 
producer  received  less  by  the  hour  for  labor  on  the  higher 
grades  than  on  the  lower  grades.  This,  it  was  said,  was  not 
the  fault  of  the  large  dealers  and  exporters,  but  of  the  local 
buyers.  For  instance,  in 
1912  atGubat,Sorsogon, 
good  current  fiber  was 
seUing  at  P25  per  100 
kilos,  which  would  have 
been  worth  F40  in  Ma- 
nila, a  profit  of  sixty  per 
cent  to  the  buyer;  at 
Tabaco,  Albay,  current 
United  States  fiber  sell- 
ing in  Manila  at  P28 
brought  P20,  a  profit  of 
forty  per  cent;  and  so 
the  percentage  of  profit 
fell  as  the  grade  became 
lower.  Inferior  grades 
of  the  fiber  brought  only 
a  reasonable  profit.^ 

With  the  idea  of  con- 
trolling the  quality  of 
hemp  fiber  and  its  pro- 
duction the  Philippine 
Legislature  passed  Act 
Number  2380.  The  ex- 
ports for  1916  and  1917  were  entirely  of  hemp  graded  under 
this  law,  and  the  customs  statistics  for  these  years  liave 
helped  to  clear  up  the  point  of  quality.  The  following  table 
gives  the  details  of  the  exports  for  the  two  years: 


First  Grade 

2nd  Grade  \  |  4th  Gra*e 

Srd  Grade 


5th  Grade 


CHART  V.   THE  PERCENTAGE  OF  ABACA 

FIBER  OF  EACH  GRADE  SHIPPED  BY  A 

SINGLE  FIRM 

Data  from  Bulletin  68,  Bureau  of  Labor, 
Washington,  D.C. 


1  From  data  by  the  Fiber  Expert,  Bureau  of  Agriculture,  Manila. 


90 


ECONOMIC  CONDITIONS 


1917 

1916 

Grade 

Quantity 
(in  kilos) 

Value 

Average 
value 

per  1000 
kilos 

Quantity 
(in  kilos) 

Value 

Average 
value 

per  1000 
kilos 

A,  Extra  prime     .    .    . 

B,  Prime 

C,  Superior  current      . 

D,  Good  current  .    .    . 

E,  Midway 

51,  Streaky  No.  1     .    . 

52,  Streaky  No.  2     .     . 

53,  Streaky  No.  3      .    . 

F,  Current 

G,  Seconds 

H,  Brown 

0,  Strings 

T,  Tow 

1,  Good  fair      .... 

J,  Fair 

K,  Medium 

L,  Coarse 

M,  Coarse  brown      .    . 
DL,  Daet  coarse  .    .    . 
DM,  Daet  coarse  brown 

OO,  Strings 

Y,  Damaged     .    .    .    . 
Hemp  prepared  with  oil 

Not  graded 

Various  grades     .     .     . 

1,152,643 

2,360,567 

5,W3,069 

7,675,611 

14,996,615 

2,003,547 

4,868,491 

2,593,126 

24,151,154 

5,738,246 

3,355,923 

522,670 

1,863,973 

18,297,299 

23,995,466 

10,011,423 

19,854,724 

6,853,837 

7,386,935 

3,443,999 

397,321 

579,464 

819,977 

569,124 

P  1,770,216 

3,085,422 

6,330,932 

7,044,859 

11,917,408 

1,293,279 

2,838,663 

1,429,240 

17,118,331 

2,591,037 

1,419,070 

126,380 

281,794 

9,826,569 

10,390,369 

3,523,462 

6,383,368 

2,046,681 

2,167,502 

948,030 

71,601 

137,811 

553,242 

320,293 

P  1,535 
1,307 
1,065 
917 
794 
645 
583 
551 
708 
451 
422 
241 
151 
537 
433 
351 
321 
298 
293 
275 
180 
237 
674 

562 

939,666 

1,426,020 

2,831,906 

4,402,325 

10,330,419 

2,384,680 

2,936,454 

1,066,529 

16,547,107 

5,773,682 

3,137,714 

856,542 

1,478,109 

17,119,707 

22,831,770 

7,489,694 

20,750,667 

8,485,812 

3,465,750 

1,460,950 

531,181 

687,466 

242,754 

59,188 

P  907,110 

1,148,338 

1,828,866 

2,469,628 

4,980,320 

1,026,831 

1,185,809 

402,679 

7,691,871 

2,140,773 

1,122,601 

118,071 

163,316 

6,625,592 

8,222,700 

2,579,226 

6,521,409 

2,451,883 

1,077,497 

411,838 

53,713 

139,782 

109,250 

5,490 

P965 
812 
645 
549 
482 
430 
403 
377 
464 
370 
357 
137 
110 
387 
360 
344 
314 
288 
310 
281 
101 
203 
450 
92 

Total 

169,435,204 

P93,615,559 

P552 

137,326,092 

P53,384,593 

P388 

A  study  of  this  table  will  indicate  the  grades  that  are  pro- 
duced in  largest  quantity  and  those  that  are  of  most  value. 

In  general  it  may  be  stated  that  nearly  all  A  and  B,  about 
one  half  of  C,  and  a  fractional  part  of  D  and  E  are  sent  to 
Japan  to  be  made  into  Tagal  hat  braids.  This  fiber  is  long 
and  glassy  white,  excellently  cleaned.  The  strings  (O)  with 
which  the  hanks  of  fiber  are  tied  when  they  reach  the  baling 
establishments,  and  the  matted  fiber  or  tow  (T)  resulting  from 
pulling  apart  hanks  of  different  grades,  are  also  sent  to  Japan, 
where  cheap  labor  is  available  to  straighten  them  out  for  rope 
making.  These  grades  are  unimportant.  Cordage  fiber,  grades 
J  to  C,  are  for  the  most  part  sent  to  the  United  States. 
Grades  I  to  C  are  known  as  the  "  U.  S.  grades  "  or  "  grades 
of  excellent  or  good  cleaning."    Some  of  the  grades  H  and  J, 


ABACA  AS  AN  EXPORT  CROP 


91 


and  nearly  all  grades  K  to  DM,  are  sent  to  the  United  King- 
dom. Grades  J  to  DM  are  known  as  the  "  U.  K.  Grades  "  or 
''  partially  cleaned  fiber." 

In  other  words,  there  are  three  principal  markets  for  Manila 
hemp  :  (1)  Japan  for  the  very  best  or  Tagal  grades ;  (2)  the 
United  States  for  the  higher  cordage  grades ;  and  (3)  the 
United  Kingdom  for  the  lower  cordage  grades.  The  exports 
to  these  markets  in  1917  were  as  follows: 


Market 

Japan       

United  States      .    . 
United  Kingdom     . 


Grades 


A,  B,  C,  (D,  E) 

C  — J 

H,  J,  to  DM 


Kilos 


6,000,000 
95,000,000 
49,000,000 


A^ALIE 


P  8,000,000 
59,000,000 
19,000,000 


The  market  for  Tagal  grades  has  become  so  distinct  that  they 
are  now  being  graded  separately.  The  demand  for  higher  and 
lower  cordage  grades  in  the  United  States  and  the  United 
Kingdom  results  from  the  differences  in  machinery,  and  is 
therefore  constant. 

In  the  long  run  it  is  the  competition  between  these  two 
markets  that  determines  the  proportion  of  the  higher  to  the 
lower  grades  of  abaca  fiber.  If  too  little  lower-grade  fiber  has 
been  produced,  these  grades  increase  in  price  until  the  pro- 
ducer receives  greater  returns  from  shipping  them.  The  lower 
grades  are  then  produced  until  the  resultant  shortage  in  the 
higher  grades  increases  the  price  of  the  grades  for  the  United 
States.  So  the  price  and  the  production  vary  according  to  the 
demands  of  the  United  States  and  the  United  Kingdom.  The 
figures  of  production  are  given  in  the  table  on  page  92. 

In  1915  the  United  Kingdom  grades  amounted  to  about 
forty  per  cent  of  the  total  abaca  production,  that  is,  "  fair  " 
to  "  coarse  brown  and  Daet  coarse  brown."  In  1916  these 
grades  had  increased  to  fifty-five  per  cent,  which  was  an 
over-production.  In  1917  they  had  decreased  to  forty-seven 
per  cent,  and  by  the  beginning  of  1918  there  was  an  actual 
shortage  in  the  grades  for  the  United  Kingdom.    Then  the 


92  ECONOMIC  CONDITIONS 

COMPARATIVE  PRODUCTION  OF  ABACA  (MANILA  HEMP) 
FOR  1915-1918 


1915 

1916 

1917 

1918 

Graces 

Number 
of  bales 

Per- 
cent- 
age 

Number 
of  bales 

Per- 
cent- 
age 

Number 
of  bales 

Per- 
cent- 
age 

Number 
of  bales 

Per- 
cent- 
age 

Extra  prime      .    .    . 

Prime 

Superior  current  .  . 
Good  current    .    .     . 

Midway 

Streaky  one,  SI  .  . 
Streaky  two,  S2  .  . 
Streaky  three,  S3      . 

Current 

Good  fair       .    .    .    . 

Seconds    

Fair 

Brown 

Medium 

Coarse       and     Daet 

coarse     

Coarse     brown     and 

Daet  coarse  brown 
Strings,     tow,      and 

damage      .... 

9,678 
17,815 
34,323 
57,161 

115,600 
21,385 
23,271 
8,976 

148,650 

110,132 
40,009 

140,321 
24,964 
46,759 

131,426 

65,592 

15,324 

1.0 
1.7 
3.4 
5.6 

11.4 
2.1 
2.3 
0.9 

14.7 

10.9 
4.0 

13.9 
2.5 
4.6 

13.0 

6.5 

1.5 

7,325 

11,039 

20,892 

32,490 

76,333 

14,460 

26,651 

9,623 

128,000 

131,499 

42,678 

204,749 

26,227 

79,481 

246,767 

87,839 

28,620 

0.6 

0.9 

1.8 

2.8 

6.5 

1.2 

2.3 

0.8 

10.9 

11.2 

3.7 

17.4 

2.2 

6.8 

21.0 

7.5 

2.4 

9,080 
20,671 
50,907 
77,695 

145,361 
15,914 
36,998 
25,491 

214,696 
41,673 
23,423 

148,558 

162,715 
59,245 

157,757 

73,206 

28,461 

0.7 
1.6 
3.7 

5.8 

11.0 

1.2 

2.8 
2.0 
16.5 
3.3 
1.8 
11.6 
12.8 
4.8 

12.3 

5.6 

2.5 

71 

552 

8,072 

37,248 

92,560 

13,497 

38,052 

24,233 

189,916 

192,429 

50,128 

394,099 

31,602 

107,900 

86,282 

31,628 

23,210 

.01 

.04 

.61 

2.82 

7.01 

1.02 

2.88 

1.84 

14.34 

14.56 

3.79 

29.83 

2.39 

8.17 

6.53 

2.40 

1.76 

Total 

1,011,336 

100.0 

1,174,664 

100.0 

1,291,851 

100.0 

1,321,4791 

100.00 

pendulum  swung  again,  and  by  the  end  of  the  year  there 
was  a  surplus  of  fiber  for  the  United  Kingdom  and  a  short- 
age in  the  grades  for  the  United  Btates. 

The  quality  of  abaca  fiber  produced  in  the  Philippines 
responds,  in  general,  to  the  demands  of  the  United  States 
and  the  United  Kingdom.  Later  we  shall  see  whether  these 
demands  can  be  anticipated. 

Price 

The  average  price  received  for  all  grades  of  abaca  fiber  may 
best  be  discussed  from  a  historic  standpoint.  Chart  VI  shows 
graphically  the  history  of  abaca  exports  and  prices  since  1877. 
From  the  heavy  smoothed  line  it  may  be  seen  (Fig.  I)  that 
the  export  of  abaca  has  steadily  increased,  the  extremes  being 
37,000,000  kilos  in  1877  and  175,000,000  kilos  in  1912.  From 

1  Not  including  32,799  bales  of  Tagal  braid. 


ABACA  AS  AN  EXPOKT  CKOP 


93 


Figure  II  it  may  be  seen  that  in  the  period  1877-1895  the 
price  rose  and  fell  twice  without  great  fluctuation;  that  in 
the  period  1899-1911  it  again  rose  and  fell;  that  since  1911 
it  has  reached  its  highest  point. 

It  will  be  noted,  also,  that  the  drop  in  price  from  1907  to 
1911  was  particularly  rapid.  This  decrease  in  the  price  of 
abaca  had  great  influence  on  the  industry  in  the  Philippines 


CHART  VI.  PHILIPPINE  ABACA  EXPORTS 

Census  and  Customs  Statistics 


and  warrants  careful  consideration.  Such  a  drop  may  have 
been  the  result  of  several  conditions,  of  which  the  following 
are  probably  the  most  important :  (1)  the  competition  of  agave 
fibers,  of  which  there  had  been  a  large  production  and  which 
are  always  cheaper  than  abaca,  with  the  lower  grades  of 
Manila  hemp ;  (2)  overproduction  of  abaca  fiber  combined 
with  a  general  falling  off  in  demand,  the  result  of  lessened 
industrial  activity  in  Europe  and  America;  (3)  a  buying 
monopoly  either  in  the  Philippines  or  in  the  United  States 
and  Europe,  or  in  both. 


94 


ECONOMIC  CONDITIONS 


As  has  been  previously  stated,  prices  obtained  for  the 
lower  and  the  higher  grades  of  abaca  in  the  early  years  of 
American  occupation  were  such  as  to  encourage  the  produc- 
tion of  lower  grades.  Consequently  the  standard  of  produc- 
tion was  continually  lowered  through  neglect  of  the  fields, 
the  use  of  serrated  knives,  and  poor  curing.  The  fiber  thus 
produced  was  not  superior  to  sisal,  henequen,  Mauritius 
hemp,  and  New  Zealand  hemp,  and  its  price  was  con- 
sequently  reduced   to   that    of   these    cheaper   materials. 

Although  not  so  much  affected,  the  higher  grades  of  abaca 
fiber  also  brought  a  lower  price  in  the  world's  market.    This 


s  s? 


ABACA 

Relative  Increase 
and  Decrease  of 

Export 

and 
Price     


/9 

,  5,^- 

^ 

■< 

CHART  VII 


cannot  be  explained  by  competition,  since  no  other  fiber  used 
in  making  rope  equals  the  best  abaca.  Again,  on  Chart  VI  it 
will  be  noted  that  in  the  period  1906-1909  the  rapid  decrease 
in  the  price  of  abaca  is  coincident  with  a  rapid  increase  in 
its  export.  For  the  purpose  of  comparing  other  periods  in 
the  history  of  abaca,  the  lines  showing  relative  increase  and 
decrease  in  export  and  price  have  been  placed  together  in 
Chart  VII,  and  periods  in  this  history  have  been  indicated  by 
rectangles.^  In  rectangle  1  the  broken  line,  which  indicates 
the  price  of  abaca,  and  the  unbroken  line,  which  represents 
the  export  of  abaca,  increase  in  about  the  same  proportion. 
In  rectangle  2,  although  there  is  an  increase  in  the  amount  of 
abaca  exported,  there  is  a  fall  in  the  price.  On  the  other  hand, 
in  rectangle  3  the  decrease  in  the  amount  of  abaca  exported 
is  accompanied  by  an  increase  in  the  price.    In  rectangle  4 

1  These  lines  are  drawn  to  a  logarithmic  scale. 


ABACA  AS  AN  EXPORT  CROP        95 

there  is  a  marked  rise  in  the  amount  exported,  and  a  marked 
fall  in  price.  No  figures  are  available  for  war  times,  but  it  is 
evident  that  the  world's  markets  were  undersupplied.  Hence 
in  the  years  1899-1904,  years  of  great  prosperity  in  the 
United  States  and  Europe,  increase  in  the  exports  of  abaca 
are  accompanied  by  increase  in  price  (rectangle  5).  After  this 
period  there  is  again  (rectangle  6)  a  decrease  in  the  amount 
of  abaca  exported,  probably  due  to  the  drought  of  1903,  while 
prices  still  continue  to  rise.  Rectangle  7  shows  another  great 
increase  in  exports,  which  are  again  accompanied  by  a  marked 
fall  in  the  price.  From  this  comparison  of  relative  increase 
and  decrease  in  price  and  export,  it  would  seem  probable  that 
the  fall  in  price  during  the  period  of  1906-1911  was  due,  to 
a  considerable  degree,  to  the  correspondingly  large  increase 
in  the  production  and  exports  during  that  time.  This  increased 
production  was  caused  by  large  plantings  (beginning  with  the 
years  1902-1906),  which  in  turn  had  been  brought  about  by 
the  high  prices  and  profits  prevailing  at  that  time. 

In  1907  there  were  panicky  conditions  in  Europe  and  the 
United  States,  and  industrial  affairs  were  weak  for  a  number 
of  years.  In  1908-1909  there  was  a  reoccurrence  of  panicky 
conditions.  At  such  times  those  industries  in  which  much 
abaca  is  used,  particularly  the  engineering  industries,  are  most 
seriously  affected.  Hence  it  is  probable  that  the  fall  in  price 
of  abaca  from  1907  to  1911  resulted  from  overproduction 
and  the  general  weak  condition  of  industrial  affairs.^ 

The  low  prices  which  abaca  fiber  was  bringing  greatly  re- 
duced the  amount  of  stripping  from  the  old  plantings.  During 
drought  the  growth  of  abaca  stops,  and  no  petioles  mature  for 
stripping.  Some  plantations  were  almost  destroyed  in  the 
drought  of  1911-1912;  in  others  it  was  impossible  to  strip 
fiber  for  several  months.  A  decided  decrease  in  the  supply  of 
abaca  fiber  resulted,  as  will  be  noted  in  the  exports  for  1913 
and  1914.    But  in  1912  the  Philippines  began  to  feel  the 

1  Such  cycles  occur  with  all  commercially  well-established  products. 


96  ECONOMIC  CONDITIONS 

quickening  pulse  of  industry  in  Europe  and  America  in 
increased  demand  for  abaca  fiber.  If  prices  had  not  risen, 
enough  fiber  would  not  have  been  produced  to  meet  this 
demand.  Even  if  buying  firms  were  in  agreement,  they  would 
have  been  compelled  to  raise  their  buying  price  to  the  pro- 
ducers. In  the  space  of  a  few  weeks  prices  rose  to  the  point 
at  which  they  had  been  in  1907,  an  increase  of  one  hundred 
per  cent  and  more.    These  facts  are  shown  in  rectangle  8. 

By  1915  the  effects  of  the  drought  had  disappeared,  and  in 
response  to  high  prices  the  stripping  of  abaca  was  everywhere 
resumed.  In  1917  exports  increased  to  170,000,000  kilos,  and 
in  spite  of  extremely  high  prices  in  1918  remained  at  that 
level.  The  maximum  production  from  available  abaca  plants 
in  1918  was  evidently,  therefore,  170,000,000  kilos.  The  very 
much  greater  proportional  increase  in  the  price  of  abaca  over 
the  production  of  the  fiber  is  seen  in  rectangle  9,  an  increase 
due  to  the  great  demand  for  the  fiber  for  war  needs  in  the 
Allied  countries. 

With  the  end  of  the  war  the  war's  demand  for  abaca  ceased, 
and  the  large  stocks  of  abaca  fiber  on  hand  in  the  United 
States,  the  disorganization  of  industry  in  Europe,  and  the  lack 
of  transportation  resulted  in  another  of  the  periodic  depres- 
sions in  the  abaca  industry.  The  demand  for  abaca  fiber  weak- 
ened and  prices  broke.  In  July,  1919,  they  had  fallen  more 
than  fifty  per  cent,  to  about  P0.40  per  kilo,  which  was  about 
the  current  price  in  1916,  before  the  war  prices  became  effec- 
tive. Another  reason  for  the  lack  of  demand  for  abaca  was 
the  failure  of  the  government  sisal  monopoly  in  Mexico ;  it 
caused  a  large  quantity  of  sisal  fiber,  which  competes  with 
the  lower  grades  of  Manila  hemp,  to  be  dumped  on  the  market 
in  the  United  States  at  a  very  low  figure.  All  these  conditions 
resulted  in  a  serious  reduction  in  the  exports  of  abaca,  the 
accumulation  of  the  fiber  in  the  Philippines,  arid  a  falling  off 
in  the  amount  of  fiber  stripped,  especially  in  the  regions  where 
high  wages  and  transportation  charges  left  little  or  no  margin 
of  profit;  laborers  working  on  shares  found  that  they  could 


ABACA  AS  AN  EXPORT  CROP        97 

not  earn  sufficient  wages,  and  planted  food  crops  or  engaged 
in  more  remunerative  industries. 

As  to  a  buying  monopoly,  nothing  definite  is  known,  al- 
though it  has  often  been  stated  that  a  monopoly,  controlling 
both  the  Philippine  and  the  foreign  market,  exists  in  the  abaca 
trade.  It  is  obvious  that  such  a  monopoly  could  easily  be 
established,  since  the  industry  is  centered  in  the  Philippines 
and  practically  in  two  ports,  Manila  and  Cebu,  and  almost 
the  whole  product  is  sent  to  London  and  New  York.  More- 
over, the  bulk  of  the  product  goes  to  only  a  few  manu- 
facturers of  rope.  It  is  known  that  stagnation  in  the  domestic 
hemp  market  results  from  the  failure  of  these  concerns  to  buy 
(usually  because  they  are  stocked  up).  The  competition  be- 
tween the  United  States  and  the  United  Kingdom  would  tend 
to  prevent  a  buying  monopoly. 

Problems  to  be  Solved 

The  problems  of  the  abaca  industry  are  as  follows : 

1.  To  maintain  the  grade  of  Manila  hemp.  It  is  doubtful 
whether  the  Daet  grades  can  be  used  to  advantage  for  cord- 
age purposes,  except  perhaps  as  a  mixture  with  the  higher 
grades.  There  can  be  no  doubt  that  the  production  of  this 
type  of  fiber  has  hurt  the  reputation  of  our  abaca,  and  for  this 
and  local  economic  reasons  its  production  should  be  dis- 
couraged. During  March  and  April  of  1915  a  worse  type  of 
stringy  product  appeared  on  the  local  market,  coming  from 
the  Buhi  district  of  South  Camarines.  The  chief  of  the  fiber 
division  of  the  Bureau  of  Agriculture  immediately  instructed 
all  fiber  inspectors  in  southern  Luzon  not  to  grade  it  under 
any  standard,  even  under  the  Daet  type.  This  prompt  action 
resulted  in  its  disappearance  from  the  market  in  less  than  two 
months  after  its  detection. 

2.  To  meet  the  market  demands  for  the  United  States  and  the 
United  Kingdom.  This  can  be  done  if  the  Bureau  of  Agricul- 
ture interprets  the  statistics  of  production  and  export,  and 


98  ECONOMIC  CONDITIONS 

anticipates  the  relative  demands  for  higher  and  lower  grades. 
Such  action  will  prevent  the  overproduction  of  any  grades, 
and  insure  the  production  of  grades  that  will  be  in  demand 
by  the  time  they  reach  the  export  markets.  The  Bureau  is  in 
a  position  to  advise  growers  and  strippers,  through  its  force 
of  inspectors.  The  production  of  different  qualities  of  hemp 
is  easily  adjusted  by  varying  the  kind  of  knife  used  and  the 
pressure  exerted  on  it.  The  greater  the  pressure,  the  higher 
is  the  grade  of  fiber  produced.  With  a  given  pressure  a  smooth- 
edged  knife  will  produce  the  highest-grade  fiber ;  a  knife  with 
thirty  serrations  to  the  inch,  almost  the  same  grade ;  a  knife 
with  fifteen  serrations  to  the  inch,  L  grade  ;  a  knife  with 
twelve  serrations  to  the  inch,  DL  grade.  Hence  it  is  com- 
paratively easy  for  a  stripper  to  lower  or  raise  the  grade  and 
quality  of  his  product,  if  he  is  once  convinced  that  demand 
and  price  will  make  it  remunerative  for  him  to  do  so.  The 
production  of  different  grades  can  also  be  regulated  through 
the  larger  owners  and  the  graders,  balers,  and  merchants,  who 
can  adjust  prices  to  stimulate  the  production  of  the  grades 
desired  and  store  fiber  against  probable  chauge  in  the  market. 

3.  To  protect  the  small  producer  from  the  middlemen.  This  is 
being  done  by  displaying  samples  of  the  different  grades  in 
public  places  as  well  as  in  establishments  for  grading  and 
baling,  and  by  furnishing  current  market  prices  to  be  posted 
by  public  officials.  Before  the  government  grading  went  into 
effect,  the  different  hemp  buyers  had  different  standards  of 
grades  and  different  nomenclatures  for  them ;  the  small  pro- 
ducer could  not  tell  which  merchant  would  give  him  the 
highest  price  for  his  fiber.  Now  the  gradings  are  standardized 
and  published,  and  the  small  producer  is  in  a  position  to  know 
approximately  what  the  grade  of  his  fiber  should  be,  and  the 
price  he  should  receive  for  it. 

4.  To  equalize  the  demand  for  abaca.  The  history  of  abaca 
is  one  of  great  fluctuations  in  price,  demand,  output,  and  ex- 
port. If  the  government  could  advise  planters  concerning 
the  probable  general  demands  of  the  United  Kingdom  and  the 


ABACA  AS  AN  EXPOKT  CROP 


United  States,  and  if  it  could  maintain  a  system  of  warehouses 
in  which  the  fiber  could  be  stored  when  the  market  is  dull, 
it  might  stabilize  the  industry  and  permit  the  continuous 
stripping  of  the  fiber  to  be  carried  on  at  a  reasonable  price. 

5.  To  secure  ma- 
chinery for  strip- 
ping. In  the  periods 
when  abaca  fiber 
brings  a  high  price, 
not  enough  labor- 
ers can  be  secured 
to  strip  it.  In  the 
periods  when  the 
fiber  brings  a  low 
price,  the  laborers 
either  refuse  to 
work  for  the  small 
wages  received,  or 
insist  on  having  a 
larger  part  of  the 
product.  The  in- 
vention of  satisfac- 
tory stripping  ma- 
chines would  solve 
the  labor  problem. 
Such  machines  as 
these  have  long 
been  in  use  in  the 
production   of   the 

sisal  fiber.  In  the  last  fifteen  years  numerous  abaca-stripping 
machines  have  been  invented  and  experimented  with  in 
the  Philippines.  As  yet,  however,  none  of  them  have  been 
successful  enough  to  be  generally  adopted ;  they  do  not 
turn  out  a  good  grade  of  fiber,  or  do  not  turn  it  out  rapidly 
enough;  or  they  are  so  large  that  they  require  a  great  deal 
of  power  to  run  them,  and  are  so  heavy  that  they  cannot  be 


A  SIMPLE  MECHANICAL  ABACA  STRIPPER 


100  ECONOMIC  CONDITIOKS 

transported,  which  causes  the  additional  expense  of  carrying 
the  petioles  to  a  central  point.  In  hilly  or  broken  coun- 
try, or  in  regions  of  small,  scattered  plantations,  only  the 
smallest  machinery  would  be  practicable.  Successful  strip- 
ping machines  of  large  capacity  might  ultimately  cause  over- 
production and  lower  the  price  ;  they  would  shut  out  small 
producers,  and  encourage  large  plantations,  a  result  not  de- 
sh-able  from  the  point  of  view  of  political  economy. 

Future  of  the  Industry 

It  has  been  stated  that  a  decrease  in  the  price  of  abaca 
greatly  affects  the  industry.  From  Chart  VI  it  will  be  seen 
that  the  general  export  price  fell  from  37.6  centavos  in  1907 
to  19.5  centavos  in  1911,  a  drop  of  almost  fifty  per  cent,  which 
especially  affected  the  lower  grades.  As  a  result,  production 
was  greatly  curtailed  in  regions  such  as  Albay,  where  the  lower 
grades  of  fiber  are  produced,  and  in  the  interior  of  Samar  and 
in  the  Bukidnori  country,  where  the  cost  of  transportation  to 
the  coast  is  an  important  factor.  In  the  lowland  regions 
producing  a  high-grade  fiber,  such  as  the  lowlands  of  Samar, 
Leyte,  and  Davao,  the  drop  was  not  felt  so  keenly.  In  many 
localities  in  which  abaca  could  no  longer  be  produced  at  a 
profit,  the  fields  were  allowed  to  grow  up  in  jungle.  In  some 
places  abaca  was  grubbed  up,  and  the  land  planted  with  coco- 
nuts. If  the  rise  in  price  of  abaca  had  not  given  it  a  new 
lease  of  life,  the  industry  would  undoubtedly  have  died  out 
in  districts  producing  a  low-grade  fiber. 

As  it  happened,  the  rise  in  price  which  occurred  in  1912 
encouraged  owners  to  renew  their  activity.  In  many  places, 
however,  they  were  unable,  because  of  the  lack  of  labor,  to  take 
advantage  of  the  higher  prices.  As  has  been  stated,  strippers 
were  dependent  on  abaca  fiber  for  their  living.  They  grew 
no  food  crops  about  their  houses ;  consequently,  when  the 
price  of  the  fiber  dropped  below  the  point  at  which  they  were 
warranted  in  obtaining  it,  these  men  left  the  lates  and  sought 


Hand  Stripping 


A  Strtppi.ng  Machine 
STRIPPING  ABACA 


Photo  by  Bureau  of  Agriculture 


1.02  ,  ECONOMIC  CONDITIONS 

work  in  other  agricultural  occupations,  especially  in  the  culti- 
vation of  rice.  Sometimes  they  remained  in  the  same  locality, 
but  just  as  often  they  went  to  other  places.  Thus,  when 
their  services  were  agam  needed,  many  of  them  were  no 
longer  available. 

The  increase  in  price  and  demand  for  abaca  during  the  World 
War  accentuated  the  shortage  of  labor  and  caused  a  demand  for 
strippers  and  helpers  which  resulted  m  a  substantial  increase  in 
wages,  and,  in  some  districts,  the  importation  of  labor. 

The  world's  consumption  of  Manila  hemp  in  1918  was  about 
1,000,000  bales.  This  was  abnormal,  and  was  due  to  the 
war.  In  1919  approximately  800,000  bales  were  consumed, 
or  200,000  bales  fewer  than  in  1918.  This  reduction  in 
consumption  caused  the  stock  in  the  Islands  to  accumulate. 
However,  typhoons  and  drought  in  1918-1919  did  consid- 
erable damage  to  existing  plantations.  The  combination  of 
events  brought  about  the  immediate  curtailment  of  produc- 
tion, which  will  undoubtedly  be  felt  for  a  few  years.  It  was 
estimated  that  the  production  of  abaca  in  1919  would  be 
twenty-five  per  cent  less  than  in  1918.  It  was  probable,  there- 
fore, that  a  decrease  in  the  production  of  hemp,  such  as  is 
indicated  on  Chart  VII  for  the  years  1903-1906, 1909-1911, 
and  1912-1914,  would  again  occur.  Such  decreases  were 
brought  about  by  similar  conditions,  that  is,  by  overproduc- 
tion of  fiber,  which  resulted  in  a  temporary  lack  of  demand, 
a  consequent  fall  of  price,  and  discouragement  to  producers 
and  strippers,  and  by  climatic  conditions  which  wrought 
destruction  in  the  hemp  fields. 

The  prices  of  hemp  in  the  middle  of  1919  were  higher  than 
those  for  1912-1916 ;  nevertheless,  they  were  not  profitable 
to  the  planters  and  strippers  because  the  cost  of  production 
was  so  much  greater  than  in  the  period  before  the  war.  In- 
deed, it  will  be  impossible  for  the  price  of  hemp  to  return  to 
its  former  level ;  a  higher  level  of  prices  has  been  established 
by  the  higher  cost  of  production.  This  new  level  will  not  be 
constant.     Prices  in  the  middle  of  the  year  1919  probably 


ABACA  AS  AN  EXPORT  CROP       103 

indicated  the  lowest  point.  As  soon  as  industrial  conditions 
in  Europe  and  America  adjust  themselves,  there  will  be  a 
period  of  industrial  revival,  and  with  it  a  heavy  demand  for 
Manila  hemp.  This  will  cause  fluctuations  in  prices,  such  as 
have  occurred  throughout  the  history  of  the  fiber. 

The  prices  of  abaca  fiber  will  always  be  governed  by  the 
world's  demand  and  the  local  supply,  and  will  rise  and  fall 
with  the  impulse  of  industry  in  Europe  and  America,  and  with 
local  conditions  of  weather  and  of  labor.  With  high  prices 
even  the  careless  owner  and  producer  of  inferior  fiber  will 
make  money.  With  a  low  market  he  will  be  forced  out  o^ 
producing,  while  the  careful,  systematic  planter  and  producer 
of  higher  grades  will  still  find  abaca  a  profitable  crop. 

The  high  prices  of  1918  did  not  accrue  to  the  producers 
of  abaca  alone.  Wages  of  hemp  strippers  increased  from 
fifty  to  more  than  one  hundred  per  cent.  The  cost  of  carrying 
hemp  from  Legaspi  to  Manila  rose  in  the  same  proportions. 
Every  item  for  maintaining  the  plantations  was  increased.  The 
value  of  the  hemp  exported  in  1918  was  Pll6,000,000. 
In  1914  the  same  amount  of  hemp  would  have  brought  only 
P33,000,000.  The  difference,  P83,000,000,  was  distributed 
among  the  persons  and  factors  that  had  to  do  with  the  pro- 
duction. A  considerable  part  of  this  increased  cost  of  produc- 
tion is  permanent,  and  a  higher  level  of  price  for  abaca  fiber 
may  therefore  be  expected. 

New  Uses  of  Abaca 

Up  to  the  last  few  years  nearly  all  the  abaca  exported  from 
the  Philippines  has  been  used  in  manufacturing  rope,  for 
which  purpose  the  best  fiber  has  no  substitute.  Since  historic 
times  the  Filipinos  have  woven  from  abaca  fiber  a  cloth  known 
as  sinamay,  although  it  is  probable  that  the  amount  so  used 
in  the  Philippines  has  never  been  more  than  ten  per  cent  of 
the  total  production.  Within  the  last  few  years,  however, 
other  uses  have  been  found  for  the  fiber.    The  knotted  yam 


104  ECONOMIC  CONDITIONS 

used  in  the  production  of  sinamay  has  been  exported  in 
increasing  quantities  to  be  made  into  hat  braids  and  coarse 
material  for  stiff enmg  clothes.  In  the  year  1918  the  value  of 
this  export  amounted  to  more  than  Fl, 500,000. 

The  highest  grades  of  fiber,  grades  AA  to  EE,  are  shipped 
to  Japan  to  be  knotted  and  reexported  as  hat  braid  to  the 
United  States.  In  1918  the  export  of  this  hemp  to  Japan  was 
worth  P6,000,000;  in  1917  it  was  worth  F8,000,000  (grades 
A,  B,  C,  and  D-E). 

For  many  years  a  strong  wrapping  paper  has  been  manu- 
factured from  old  rope.  When  the  price  of  paper  is  high,  the 
waste  from  abaca  stripping  has  been  exported  for  this  purpose ; 
with  the  low  price  of  the  fiber  there  was  established,  in  one  prov- 
ince, a  factory  which  prepared  and  dried  the  whole  petiole  for 
shipment  to  the  United  States,  where  it  was  made  into  paper. 

Recently  lupis  (strips  of  the  fiber  with  the  pulp  attached) 
has  received  a  considerable  amount  of  attention  in  local  handi- 
craft work. 

It  is  probable  that  these  new  uses  for  abaca  fiber  are  but 
the  beginnings.  Its  strength  and  its  resistance  to  water  com- 
mend it  for  use  in  objects  of  art  as  much  as  for  rope  making ; 
the  beautiful  hues  to  which  it  can  be  dyed,  and  its  luster,  make 
it  an  excellent  material  for  such  purposes. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 

Suggestions  based  on  the  Text 

1.  The  stripping  of  abaca,  including  a  description  of  the  prep- 
aration of  the  strips  for  the  knife,  of  the  knife  and  lever,  of  smooth 
and  serrated  knives,  and  of  curing  and  baling. 

2.  Why  labor  is  the  chief  factor  in  the  production  of  abaca. 
3.  Judging  from  the  respective  shares  of  the  laborers,  compare 
the  labor  value  of  rice  and  abaca  fiber.  4.  Could  the  abaca  laborer 
be  made  less  dependent  on  the  production  of  the  fiber  and  the 
price  of  abaca  ?.  5.  Would  it  be  economically  of  advantage  to  him 
and  to  the  community  ? 


ABACA  AS  AN  EXPORT  CROP        105 

6.  What  must  be  the  charaxiteristics  of  a  successful  abaca- 
stripping  machine  ?  7.  What  would  the  effect  of  a  successful 
stripping  machinery  be  on  {a)  the  small  plots  of  abaca ;  {b)  on  the 
status  of  the  laborer  in  abaca ;  (c)  on  the  planting  and  production 
of  abaca ;  (d)  on  the  price  of  abaca  fiber  ? 

8.  What  determines  the  average  quality  of  abaca?  9.  In  the 
long  run,  what  determines  the  average  price  of  Manila  hemp  ? 
10.  What  determines  the  price  at  any  given  time  ?  Explain  your 
statements  by  referring  to  Charts  VI  and  VII. 

11.  If  you  had  a  sum  of  money  to  invest,  would  you  invest  it 
in  an  abaca  plantation  ?   Why  ? 

12.  Make  a  chart  showing  the  value  of  exports  of  Manila  hemp 
since  1899.  13.  Point  out  the  periods  of  large  exports  and  high 
prices,  large  exports  and  low  prices,  small  exports  and  high  prices. 
Explain  the  conditions  that  brought  them  about. 

14.  Why  is  it  that  after  destructive  typhoons  in  abaca  regions, 
causing  the  blowing  down  of  stalks,  an  unusual  percentage  of 
grades  for  the  United  Kingdom  is  produced? 


Suggestions  for  the  Study  of  Local  Conditions  in 
Abaca  Regions 

1.  How  abaca  fiber  is  brought  from  outlying  districts  to  grad- 
ing centers.  2.  How  local  conditions  agree  with  and  differ  from 
those  described  in  the  text. 


Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  From  the  latest  "  Statistics  on  Principal  Crops  of  the 
Philippine  Islands  "  prepare  a  chart  representing  the  amount  of 
abaca  production  in  the  Philippines.  2.  Divide  it  into  sections 
representing  the  production  of  the  chief  producing  provinces. 
3.  Compare  these.  4.  Using  these  data  and  referring  to  Miller's 
"  Commercial  Geography  "  and  Miller  and  Policy's  "  Intermediate 
Geography,"  prepare  a  map  of  the  Philippines  showing  the  abaca- 
producing  regions.  5.  Explain  the  conditions  of  soil  and  weather 
that  make  abaca  production  possible  in  each. 


106  ECONOMIC  CONDITIONS 

6.  Secure  the  necessary  data  from  the  latest  annual  report  of 
the  Collector  of  Customs,  and  bring  Chart  VI  down  to  the  present. 
Comment  on  these  new  figures. 

7.  From  the  Fhilipplne  Agi'kulture  Eevleiv,  Vol.  XI,  No.  3: 
In  the  abaca  districts,  (a)  a  description  of  the  standard  grades 

of  Manila  hemp ;  (b)  the  grading,  baling,  and  inspection  of  abaca 
fiber. 

In  the  maguey  districts,  (a)  a  description  of  the  standard  grades 
of  maguey  and  sisal;  (b)  the  grading,  baling,  and  inspection  of 
maguey  fiber. 

8.  A  comparison  between  the  cultivation,  marketing,  and  manu- 
facturing of  abaca  in  the  Philippines  and  cotton  in  the  United 
States.    (Brigham,  pages  22-39.) 

9.  Some  attempts  to  solve  the  abacarstripping  problem ;  their 
results. 

10.  The  structural  and  economic  classification  of  fiber.  11.  How 
various  fibers  are  obtained.  12.  Machines  that  have  been  adapted 
to  the  processes.    (Miller.) 

13.  The  cordage  fibers  of  the  world.  14.  Max,  where  grown  and 
used  (illustrated  with  map).  15.  The  relation  of  flax  and  other 
cordage  fibers  to  abaca.   (Miller ;  Finch  and  Baker.) 

Selections  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  Chapter 

1.  Market  and  normal  values.    (Bullock,  pages  98-115.) 

2.  Explain  the  difference  between  economics  and  political 
economy. 


CHAPTER  VI 


COPEA  AND  COCONUT  OIL  AS  EXPORT  CROPS 


Historical 


1900  1902  1904  190<5  1908  1910 


THE  WORLD'S 
COPBA  EXPORT 

In  Thocsands  op  Tons 
000  Dropped 


^Philippine  sliare 

Statistics  from 

L.I'I8eHEL&  CO 

iiondon 


Before  the  arrival  of  Europeans  in  the  Orient  the  coconut 
palm  was  a  most  important  plant;  the  meat,  oil,  sap,  fiber, 
and  other  parts  and  j)roducts  of  the  tree  were  already  being 
utilized.  It  is  evident  that 
coconuts  were  a  large  crop 
in  Ceylon  long  before  the 
days  of  the  Portuguese, 
for  on  their  arrival  they 
noted  that  the  southeast 
coast  of  the  island  was  a 
vast  coconut  grove.  The 
Dutch  gave  great  impetus 
to  the  coconut  industry  in 
their  Eastern  colonies  by 
encouraging  the  production 
and  export  of  coir  fiber. ^ 

As  late  as  the  first 
quarter  of  the  nineteenth 
century  Europe  knew  little 
of  the  value  and  uses  of 
coconut  products.  About 
that  time  a  certain  captain 
of  Aberdeen  took  home  a 

cargo  of  oil,  but  had  considerable  difficulty  in  disposing  of 
it.  It  was  finally  bought  by  a  woolen  mill  and  utilized  as 
lubricating  oil. 


^ 


i 


y^2M^ 


CHAKT  VIII 


i  J.  Ferguson's  "  Coconut  Planters'  Manual.' 
107 


108 


ECONOMIC  CONDITIONS 


The  recognition  of  the  properties  of  coconut  oil,  which 
has  placed  it  among  the  oils  most  highly  valued  for  human 
consumption,  did  not  come  about  until  the  latter  part  of  the 
nineteenth  century.  For  manufacturing  purposes  coconut  oil 
was  first  utilized  in  large  quantities  for  high-grade  soaps  and 
candles.  Because  of  the  advancing  price  of  animal  fats  (but- 
ter and  lard)  there  has  been  a  growing  tendency  to  substitute 
products  from  vegetable  oils.  Cottonseed  and  peanut  oil  are 
used  to  a  large  extent,  but  coconut  oil,  because  of  all  oils 

1896  1898   1900  1902   1904    1906  1908    1910   1912    ^^     ^lOSt     cloSCly     rCSemblCS 

butter  in  its  composition, 
and  because  it  has  a  high 
melting  point,  is  the  most 
suitable  for  the  purpose. 
Various  persons  and  coun- 
tries claim  the  credit  for 
beginning  the  manufacture 
of  imitation  butter  and  lard 
from  coconut  oil.  Before 
the  World  War  the  most 
important  producers  and 
consumers  were  Germany, 
France,  and  England.  In 
Germany  millions  of  pesos 
were  invested  in  the  industry.  Not  only  was  the  consumption 
of  this  product  increasing  in  these  countries,  but  its  manufac- 
ture and  its  use  were  spreading  in  other  parts  of  Europe  and 
in  America.  Meanwhile  increased  amounts  of  oil  had  been 
utilized  in  making  soap  and  candles,  the  large  consumption 
of  whole  nuts  had  continued,  and  the  production  of  desic- 
cated coconut  had  increased.  The  adjustment  of  demand  and 
supply  in  the  product  of  a  long-time  crop  like  copra  covers 
a  long  period.  New  plantings  of  coconut  palms  produce  full 
yields  only  after  seven  years  of  growth.  Thus  the  output 
of  copra  had  not  kept  pace  with  the  increased  demand,  and 
until  1914  prices  had  continued  to  rise.   (See  Chart  XII.) 


CHART  IX.     PERCENTAGE    OF    THE 

WORLD'S  COPRA  SHIPMENTS  FROM 

THE  PHILIPPINES 

Statistics  from  L.  Fischel  &  Co.,  London 


CHART  X.    PHILIPPINE  COCONUT  EXPORTS  IN  MILLIONS  OF  PESOS 
Customs  Statistics. 


110  ECONOMIC  CONDITIONS 

Philippine  Pre-Wak  Production 

The  production  of  coconuts  before  the  World  War  is  dis- 
cussed in  terms  of  copra,  since  it  was  this  dried  meat  of  the 
nut  that  was  exported  to  the  oil-consuming  countries.  The 
Philippines  then  exported  more  copra  than  any  other  country. 
Chart  VIII  shows  graphically  the  gradual  increase  of  the 
world's  copra  export  and  the  portion  of  it  which  came  from 
the  Philippines.  Chart  IX  shows  that  on  the  average  the 
Islands  had  usually  been  credited  with  about  one  fourth  of 
the  world's  output.  The  exports  from  Java  had  advanced 
relatively  more  and  from  Singapore  relatively  less  than  from 
the  Philippines.  In  general,  therefore,  it  may  be  stated  that 
the  Philippines  were  keeping  their  position  as  the  chief 
exporter  of  copra. 

Statistics  given  thus  far  have  dealt  only  with  the  amount 
of  copra ;  but  if  the  value  of  this  export  is  considered,  its  im- 
portance is  even  greater.  This  is  shown  in  Chart  X.  Chart  XI 
shows  the  varying  degrees  in  which  sugar,  abaca,  tobacco,  and 
copra  have  entered  the  export  trade  of  the  Philippines.  Al- 
though in  1899  copra  was  the  least  important  of  the  four  staple 
Philippine  export  crops,  in  1911  it  approached  abaca  in  value. ^ 
This  advance  came  about  not  only  through  greatly  increased 
amounts  of  copra  exported,  but  through  its  advancing  price, 
which  in  the  period  under  discussion  increased  about  one 
hundred  per  cent  (see  Chart  XII). 

Philippine  Post-War  Production 

After  the  drought  of  1912  (see  Chart  XIII)  the  amount 
of  copra  exported  from  the  Philippines  fell  off  about  forty-five 
per  cent,  and  before  the  trees  recovered  and  production  became 
normal,  the  World  War  began.    The  Islands  had  been  sending 

1  Figures  for  abaca  do  not  include  knotted  abaca.  Since  eight  ninths  of 
the  cost  of  knotted  abaca  is  due  to  the  labor  of  tying  it,  the  relative  positions 
of  abaca  exports  and  copra  exports  would  be  little  changed  by  adding  the 
value  of  fiber  only. 


COPRA  AS  AN  EXPORT  CROP  111 

their  copra  to  Europe,  mostly  to  France.  As  shipping  became 
scarcer,  the  copra  began  piUng  up  in  the  warehouses  of  Manila 
and  Cebu.  The  demand  for  copra  in  Europe  had  even  in- 
creased, but  it  was  possible  to  ship  only  a  part  of  our  product 
to  the  market.  As  local  stocks  increased,  the  price  decreased 
(Chart  XII).  Finally  two  outlets  for  our  copra  w^ere  found, 
the  one  (1)  directly,  the  other  (2)  indirectly,  into  the  United 
States : 

1.  In  1912  the  United  States  imported  about  21,000,000 
tons  of  copra  from  the  Philippines,  which  was  about  fifteen 
per  cent  of  our  total  export  of  copra;  in  1917  it  imported 
68,000,000  tons,  which  was  more  than  seventy  per  cent  of 
our  copra  exports;  and  in  1918  it  imported  our  entire  copra 
exports  of  more  than  55,000,000  tons.  The  destination  of 
Philippine  copra  was  now  changed  from  Europe  to  America. 

2.  Just  before  the  World  War  coconut-oil  factories  were 
established  in  the  Philippines  to  supply  the  domestic  market 
and  to  export  oil  to  China.  The  oil  expressed  from  a  ton  of 
copra  takes  up  only  a  small  part  of  the  space  that  the  copra 
fills.  While  ships  were  too  scarce  and  freights  too  high  for 
copra,  it  was  possible  to  ship  the  oil.  Tanks  and  casks  were 
made  available,  and  more  machinery  was  imported,  with  the 
result  that  while  copra  exports  diminished,  oil  exports  in- 
creased. In  1912  the  coconut  oil  exported  was  worth  only 
P80  and  the  copra  more  than  p28,000,000;  in  1918  the 
coconut  oil  exported  was  worth  P63,300,000  and  the  copra 
Pl0,300,000.  Practically  all  the  oil  was  shipped  to  the 
United  States. 

In  other  words,  the  coconut  industry  in  the  Philippines  was 
saved  from  ruin  for  the  period  of  the  war  by  developing  the 
United  States  market  for  both  copra  and  oil.  The  unusually 
favorable  results  for  the  Islands  can  be  seen  in  Chart  X.  In 
1918  the  value  of  our  coconut  exports  was  again  greater  than 
that  of  any  other  product  except  hemp. 


112 


ECONOMIC  CONDITIONS 


Increase  in  Yield 

Although  the  coconut  industry  is  a  most  flourishing  one  in 
the  Philippines,  certain  conditions  which  are  liable  to  affect  it 
adversely  should  be  understood.  Mr.  O.  W.  Barrett,  formerly 
of  the  Bureau  of  Agriculture,  estimated  that  the  coconut 
production  in  the  Philippines  could  be  increased  one  fourth 
without  increasing  the  area  of  production,  if  only  the  proper 
methods  of  cultivation  should  be  followed.^ 


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CHART  XI.    FOUR  PRINCIPAL  EXPORTS'OF  THE  PHILIPPINE  ISLANDS 

Percentage  of  value  of  total  exports 


Two  kinds  of  plantings  are  found,  groves  owned  by  large 
landholders  or  combinations  of  landholders,  and  patches  about 
the  homes  of  small  farmers.  The  questions  of  selecting  seed 
and  of  giving  ample  space  between  rows  and  between  plants 
in  the  row  are  of  as  great  importance  as  in  the  production 
of  corn,  and  have  received  as  little  attention  from  coconut 
planters.  The  growth  of  weeds,  grass,  and  underbrush  in 
coconut  groves  greatly  reduces  production,  and  with  the 
rubbish,  dead  leaves,  and  dead  tree  trunks,  helps  to  provide 
breeding  places  for  coconut   pests.     In    important   coconut 

•  1  See  Farmers'  Bulletin  No.  17,  Bureau  of  Agriculture,  and  the  Philippine 
Agricultural  Review. 


COPEA  AS  AN  EXPOliT  CROP 


113 


regions  there  are  groves  which  are  kept  clean  either  to  prevent 
insects  from  breeding,  or  to  make  it  easy  to  find  the  coconuts. 
In  most  places,  however,  both  large  and  small  groves  remain 
uncleared. 

The  amount  of  copra  produced  in  the  Philippines  is  greatly 
lessened  by  pests,  storms,  and  drought.  The  most  destructive 
of  the  coconut  pests  are  insects,  mammals,  birds,  and  dis- 
eases.^ Of  the  insects  the  beetles  are  by  far  the  most  harmful, 
particularly  the   uang,  or  rhinoceros  beetle,^  which  attacks 

1899  1901   1903   1905   1907   1909   19n   1913   1915  1917 


280 
''10 

200 
160 
120 
80 

/ 

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i 

\ 

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/ 

\ 

/^ 

- 

J 

\ 

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^ 

^ 

CHART  Xll.    PHILIPPINE  COPRA  EXPORT;   PRICE  PER  METRIC  TON 
Customs  Statistics 


the  bud  of  the  palm.  This  pest  has  gone  throughout  the 
Philippines,  and  in  other  Oriental  coconut  groves  has  caused 
damage  amounting  to  millions  of  pesos.  Another  harmful 
beetle  is  the  red  weevil,^  which  bores  into  the  trunk  of  the 
palm.  Zamboanga,  Laguna,  and  Oriental  Negros  are  known 
to  be  infected  by  it,  but  no  serious  outbreaks  have  recently 
occurred. 

The  rhinoceros   beetle   breeds  in   rubbish  formed  by  old 
leaves,  husks,  and  the  like,  and  in  old  trunks  and  stumps  of 

1  Philippine  Agricultural  Bemew,  Vol.  V,  No.  5. 

2  Oryctes  rhinoceros.  '  Rhynchophorus  femigineus. 


114  ECONOMIC  CONDITIONS 

palms.  The  red  weevil  enters  the  trunk  of  the  palm  through 
wounds  and  lays  its  eggs.  The  grubs  bore  cavities  and  finally 
destroy  the  tree.  The  prevention  of  these  weevils  rather  than 
their  slaughter  is  the  only  possible  remedy,  and  this  must  be 
effected  by  the  elimination  of  all  rubbish  and  dead  palm  trunks 
and  stumps  within  and  near  the  plantations,  and  by  the  burn- 
ing of  all  trees  seriously  injured  by  the  red  weevil.  Thus 
cleanliness  is  one  of  the  first  rules  of  coconut  cultivation.  In 
certain  regions  where  cleanliness  is  not  observed,  loss  to  the 
coconut  crop  may  amount  to  fifty  per  cent.  At  Jimenez, 
Misamis,  a  whole  coconut  grove  was  destroyed  by  the  rhinoc- 
eros beetle.  Several  other  beetles  and  weevils  attack  Philip- 
pine coconut  groves,  and  there  are  scales  which  do  more  or 
less  damage  and  often  kill  young  trees  ;  but  the  destructiveness 
of  these  in  comparison  with  the  two  insects  first  mentioned 
is  slight. 

In  the  Philippines  to-day  there  are,  in  all,  at  least  eighteen 
insect  coconut  pests,  six  of  which  are  important  and  two  of 
which  are  dangerous.  In  comparison  with  that  of  other  coun- 
tries, however,  our  loss  from  such  pests  is  small;  if  care  be 
taken,  these  insects  can  easily  be  controlled. 

Certain  animals  and  birds  also  prove  harmful.  Fruit  bats, 
monkeys,  and  crows  eat  the  young  fruit  of  the  coconut  palm. 
In  sparsely  settled  communities  the  wild  pig  is  a  menace  to 
young  plantations,  since  it  roots  up  and  devours  the  seedlings, 
and  can  be  kept  away  only  by  means  of  strong  fences.  The 
wild  pig  is  especially  harmful  in  the  Moro  country,  where  in 
a  single  night  hundreds  of  trees  may  be  destroyed  in  one 
grove,  if  a  hog-proof  fence  has  not  been  built  round  it. 

Bud  rot  is  the  most  serious  of  all  fungous  or  bacterial  dis- 
eases attacking  the  palm.  This  disease  is  known  in  all  coco- 
nut regions.  In  certain  countries,  such  as  Cuba,  it  is  a  menace. 
The  Philippines  have  suffered  one  bad  outbreak  in  the  last 
decade.  No  cure  is  known  for  this  disease,  and  palms  attacked 
by  it  should  be  immediately  cut  down  and  burned,  or  buried 
with  lime. 


COPKA  AS  AN  EXPORT  CROP       115 

The  law  empowers  the  Bureau  of  Agriculture  to  issue  regu- 
lations for  the  control  of  plant  pests.  Thus  far  it  has  been 
necessary  to  take  drastic  measures  against  bud  rot  only. 
Systematic  inspections  are  made,  and  owners  are  compelled 
to  destroy  the  infected  trees. 

Extraordinary  droughts  are  injurious  to  coconuts.  The 
effects  of  the  drought  of  1912  are  seen  in  the  reduced  ex- 
ports for  1913  and  1914  (Chart  VIII).  In  certain  regions 
typhoons  also  are  very  destructive,  particularly  in  the  belt  in 
which  Capiz  Province  and  Samar  are  situated.  The  high 
winds  blow  the  nuts  from  the  trees  and  so  strain  the  roots 
of  the  trees  that  the  production  is  lessened.  In  1908  a  par- 
ticularly severe  typhoon  passed  over  the  region  just  mentioned. 
It  was  estimated  that  the  production  of  copra  on  the  island 
of  Romblon  for  the  year  1909  was  only  fifteen  per  cent  of  the 
normal ;  for  1910,  about  twenty-five  per  cent ;  for  1911,  about 
forty  per  cent ;  and  for  1912,  about  sixty  per  cent.^  The  fall- 
ing off  was  due  to  the  effect  of  the  typhoon,  a  recovery  from 
which  was  estimated  to  require  five  years.  Similar  reports 
came  from  Samar  and  Capiz. 

Increase  in  Quality 

The  loss  from  poor  planting,  poor  cultivation,  pests,  and 
drought  is  considerable  in  the  Philippines,  but  the  loss  from 
poor  harvesting  and  poor  drying  is  the  largest  of  all.  The 
percentage  of  green  meat  in  Philippine  copra  is  very  large. 
Green  nuts  are  plucked  for  several  reasons.  In  many  dis- 
tricts loss  by  thieves  is  great,  and  owners  prefer  to  be  sure 
of  the  green  nuts  rather  than  run  the  risk  of  losing  the  ripe 
fruit.  Constant  need  of  ready  money  causes  the  small  owners 
to  pick  the  green  nuts  and  cure  them  for  immediate  sale, 
instead  of  waiting  for  larger  returns  from  the  mature  fruit 
The  nuts  in  the  cluster  do  not  ripen  together.  In  the  system 
of  cutting  nuts  from  the  palm,  however,  the  tendency  is  to 

1  Report  of  R.  K.  Barron. 


116 


ECONOMIC  CONDITIONS 


harvest  all  at  one  time.  Coconuts  shoukl  not  be  picked,  cut, 
or  thrown  down  from  the  trees.  When  they  are  ripe,  they  fall 
of  their  own  weight,  and  should  not  be  gathered  until  then. 
The  highest-priced  copra  in  the  market  to-day  comes  from  the 
Malabar  coast  of  India.  In  that  region  only  nuts  which  have 
fallen  to  the  ground  are  gathered,  and  these  are  still  allowed  to 
ripen,  on  platforms,  for  a  month  or  more  before  being  opened. 
Perhaps  one  third  of  the  copra  produced  in  the  Philippines 
is  sundried  (Cebu  copra)  ;  the  rest  is  cured  by  the  smoking 

process  known  locally  as  the 
tapahan.  Both  these  methods  are 
used  in  many  parts  of  the  world. 
Sundrying  gives  a  better  product, 
which  can  be  used  in  the  manu- 
facture of  foods.  Smoked  copra, 
on  account  of  the  presence  of 
creosote,  brings  a  lower  price. 
Since  expensive  refining  methods 
would  be  necessary  to  make  it 
suitable  for  food  products,  it  is 
used  principally  for  soaps,  can- 
dles, and  the  like.  On  account 
of  the  careless  methods  employed 
both  the  sundried  and  the  smoked 
copra  get  covered  with  dirt  while  being  cured,  and  both  con- 
tain such  a  high  percentage  of  water  that  much  of  the  oil  is 
lost  through  the  growth  of  molds.  A  better  grade  of  sun- 
dried  copra  would  be  obtained  if  it  were  cured  on  platforms 
raised  above  dust  and  dirt.  A  better  grade  of  tapahan  would 
result  if  zinc  sheets  were  placed  under  the  copra  while  the  fresh 
fuel  (husk  and  shell)  is  smoking,  until  a  good  body  of  coals 
has  formed.  Creosote  would  thus  be  eliminated,  but  scorch- 
ing, which  is  one  fault  of  the  system,  would  not  be  overcome. 
Ordinary  Philippine  copra  contains  from  ten  to  fifteen  per  cent 
of  water  when  put  aboard  ship.  Copra,  not  to  deteriorate, 
must  not  contain  more  than  five  per  cent  of  water,  and  can 


P    270- 

r 

260- 

;--MALABAR 

230- 

.-CEYLON 

240- 

SINGAPORE 

JAVA 

230- 

-SOUTH  SEA,-STRAITS,-MACASSAR 
:--ZANZIBAR 

—MANILA 

220- 

• 

210- 

- 

200- 

- 

CHART  Xlll.     PRICE  OF  COPRA 

IN  PESOS  PER  TON  IN  LONDON 

DECEMBER  21,  1911 

Statistics  from  L.  Fischel  &  Co. 


A  Model  Steam  Dkieb 


Photo  by  liureavi  of  Agriculture 


•^'''    ..           's                           .         ' 

MmLrmm. 

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HV 

A  Philippine  Smoky  Open  Kiln 
CUEING  COPRA 


118 


ECONOMIC  CONDITIONS 


be  produced  iii  commercial  driers  only,  in  which  the  moisture 
is  evaporated  by  hot  air  or  perhaps  by  steam.  Such  machines 
are  used  in  parts  of  the  PhiHppines,  such  as  Laguna  and 
Tayabas,  but  are  not  yet  entirely  successful. 

At  the  present  time  Philippine  copra  is  among  the  lowest- 
priced  copras  in  the  world's  market.   The  prices  it  has  brought, 

in  comparison  with  those 
of  other  large  producing 
countries,  can  be  seen  on 
Chart  XIII.  As  long  as 
the  present  great  demand 
for  copra  exists,  there  will 
be  a  good  profit  in  the  pro- 
duction of  the  inferior  prod- 
uct now  exported  from 
the  Philippines,  although 
to-day  more  than  fourteen 
per  cent  of  the  possible 
value  of  Philippine  copra 
is  lost  by  poor  curing  (see 
Chart  XIV).  But  when 
the  market  is  satisfied, 
prices  will  decline,  and  the 
lower  grades  will  be  more 
affected,  just  as  the  lower 
grades  of  Manila  hemp 
bring  proportionally  lower 
prices  when  there  is  a  general  decline  of  that  staple. 

The  problem,  therefore,  is  not  only  to  increase  the  value  of 
the  present  copra  export  of  the  Philippines  by  producing  a 
clean  white  copra  of  low-water  content  (instead  of  a  product 
which  easily  molds),  but  to  anticipate  the  production  of  a 
higher  grade  of  copra  in  other  countries,  which  will  force 
down  the  price  of  a  low-grade  Philippine  product.  Such  an 
increase  in  quality  will  result  from  the  use  of  mature  nuts 
and  the  introduction  of  artificial  driers.    The  use  of  ripe  nuts 


CHART  XrV.    VALUE  OF  PHILIPPINE 
COPRA  EXPORTS,   lyil 

Data  from  L.  Fischel  &  Co.,  London 


COPKA  AS  AN  EXPORT  CROP  119 

may  be  brought  about  through  the  education  of  the  coconut 
growers,  or  through  government  regulation.^  Large  driers 
will  be  procured  most  readily  by  the  owners  of  large  planta- 
tions, although  they  can  be  erected  cooperatively  by  smaller 
growers  or  by  private  individuals  to  whom  local  growers  sell 
their  coconuts. 

Such  discussion  does  not  take  into  account  any  improve- 
ment in  the  present  methods  of  curing.  In  many  districts  the 
system  of  buying  copra  offers  no  inducement  to  the  maker  to 
produce  a  better  quality,  since  all  grades  sell  at  the  same 
price.  Moreover,  the  continued  advances  of  money  compel 
the  small  producers  to  sell  their  product  to  certain  dealers. 
This  results  in  a  lack  both  of  competition  and  of  incentive 
to  produce  the  best  copra.  Changed  conditions  may  produce 
copra  of  a  higher  grade. 

Domestic  Consumption 

The  output  of  copra  in  the  Philippines  depends  in  no  small 
measure  on  the  production  of  tuba.  The  owners  of  Visayan 
groves,  particularly  those  in  localities  not  connected  with  the 
market  by  reasonably  cheap  transportation,  often  find  it  more 
profitable  to  produce  tuba  for  local  consumption  than  to  grow 
copra  for  export.  To  a  considerable  extent  this  condition  is 
regulated  by  the  price  of  copra ;  for  when  the  price  rises,  the 
tendency  is  to  allow  flower  stalks  to  yield  nuts  rather  than  sap. 

The  local  use  of  the  coconuts  themselves  is  rather  large. 
In  several  localities  (for  instance,  in  Ilocos  Sur  and  parts  of 

1  On  the  island  of  Cagayan  de  Sulu  an  American  trader  and  planter 
entered  into  an  agreement  with  the  Chinese  traders  for  the  purpose  of 
encouraging  the  production  of  better-grade  copra.  By  this  agreement  the 
producers  had  to  chop  up  their  copra  in  the  presence  of  the  buyer.  If  it 
were  shown  to  be  inefficiently  cured,  made  of  immature  nuts,  or  smoked, 
it  was  not  bought.  If  a  Chinaman  violated  the  agreement,  he  paid  a  forfeit. 
As  a  result,  the  producers  used  only  matured  nuts,  and  turned  out  a  good 
grade  of  sundried  copra,  whereas  on  the  neighboring  islands  the  lowest  grade 
of  smoked  copra  was  brought  to  market  (from  the  report  on  the  Sulu  district, 
by  H.  C.  Stanton). 


120  ECONOMIC  CONDITIONS 

Union  Province)  the  whole  crop  of  nuts  is,  as  a  rule,  used 
locally  or  exported  to  other  provinces  for  culinary  purposes. 
Coconut  oil  is  the  fat  which  enters  to  the  greatest  extent  into 
the  diet  of  the  Filipinos ;  it  is  also  employed  locally  for  many 
other  purposes.  The  value  of  oil  in  proportion  to  its  bulk  is 
much  greater  than  that  of  copra,  and  oil  is  often  produced 
in  regions  remote  from  a  copra  market,  since  the  cost  of  trans- 
porting it  is  proportionally  less  than  the  cost  of  transporting 
copra.  In  a  few  localities  from  which  transportation  is  dear 
the  product  of  the  coconut  palm  is  reduced  to  alcohol  by 
distilling  the  tuba.  As  such  regions  are  tapped  by  systems 
of  roads  and  railroads,  the  local  production  of  oil  and  alcohol 
decreases,  and  copra  is  made  instead.  From  1910  to  1917 
the  amount  of  native  oil  produced  declined  from  7,000,000 
liters  to  2,600,000  liters,  the  decline  being  due  to  the  exten- 
sion of  roads  and  railroads  in  southern  Luzon  and  the  general 
high  price  of  copra. 

The  large  plantings  of  new  coconut  groves  are  taking  hun- 
dreds of  thousands  of  nuts  which  would  otherwise  be  made 
into  copra,  and  the  crop  of  a  few  regions  in  the  neighborhood 
of  districts  where  extensive  new  plantings  are  being  made  is 
sold  almost  entirely  for  seed. 

Future  of  the  Industry 

In  looking  to  the  future  of  coconut  oil  we  must  first  con- 
sider the  possibility  of  competition.  At  the  present  time  coco- 
nut oil  is  probably  more  used  than  any  other.  Increased 
demand  has  greatly  increased  the  price,  and  consumers  will 
naturally  look  for  cheaper  oils  to  take  its  place.  Of  these 
there  are  at  present  only  two :  the  palm  oil  of  Africa,  which 
is  not  suitable  for  edible  purposes ;  and  the  soya-bean  oil  of 
China  and  Japan,  which,  though  cheap  and  good,  is  not  so 
suitable  for  artificial  butters  and  lards  as  coconut  oil.  We 
are  therefore  safe  in  stating  that  at  the  present  time  no  vege- 
table oil  is  known  which  can  compete  with  coconut  oil.    The 


COPRA  AS  AN  EXPORT  CROP  121 

production  of  synthetic  oil  is  so  improbable  as  hardly  to  merit 
consideration.  The  whole  question  of  the  future  of  the  coco- 
nut industry  can  therefore  be  limited  to  a  discussion  of  copra 
and  oil.  Chart  XII  shows  the  increase  in  the  price  of  Philip- 
pine copra  since  1899.  Whether  the  high  price  now  obtained 
for  copra  will  continue  depends  on  two  things :  the  demand 
in  Europe  and  America  for  products  of  coconut  oil ;  the  pro- 
duction of  coconuts.  If  the  two  keep  pace,  the  price  will 
continue  at  its  present  high  point.  If  the  demand  increases 
in  greater  proportion  than  the  crop  of  nuts,  the  price  will  rise 
still  higher.  If  the  output  increases  faster  than  the  demand, 
the  price  will  fall.  According  to  the  present  uses  of  coconut 
oil,  and  the  wider  appreciation  of  its  products,  the  demand 
will  greatly  increase  within  the  next  few  years,  especially  in 
Europe ;  the  price  will  probably  rise  in  the  immediate  future. 
On  the  other  hand,  millions  of  new  palms  have  been  planted 
in  the  tropics,  and  soon  there  will  be  a  great  increase  in  the 
amount  of  copra  produced,  which  will  probably  bring  the  price 
down  again. 

But  even  with  greatly  increased  production  it  is  probable 
th-at  for  many  years  to  come  copra  will  be  one  of  the  most 
profitable  crops  of  the  Philippines.  New  plantations  set  out 
several  years  ago  by  farsighted  individuals  are  now  begin- 
ning to  bear.  Each  year  finds  a  larger  planting  of  new  palms, 
and  interest  in  the  industry  is  increasing  constantly.  With 
better  means  of  transportation  new  areas  suitable  to  the  coco- 
nut are  being  made  available.  At  the  present  time  only  a 
fraction  of  the  coconut  lands  in  the  Philippines  are  utilized. 
Mindanao  contains  thousands  of  hectares  of  such  land.  The 
Bondoc  Peninsula  may  become  as  great  a  coconut  grove  as  the 
region  of  Tayabas  round  Mount  Banahao.  Palawan,  the  high- 
lands of  Cavite  and  Laguna,  Sorsogon,  Mindoro,  Panay,  the 
Sulu  Archipelago,  and  numerous  smaller  areas  offer  oppor- 
tunities for  coconut  planting.  Better  methods  of  -cultivating 
the  tree  and  of  making  copra  are  constantly  being  used 
throughout   the   Islands.     Groves   in   Tayabas   which   were 


122  ECONOMIC  CONDITIONS 

formerly  littered  with  rubbish  and  overgrown  with  under- 
brush now  present  clean,  straight  rows  of  palms.  Here  and 
there  is  observed  the  tendency  to  use  ripe  nuts  rather  than 
to  cut  nuts  from  the  tree.  Artificial  driers  are  now  being 
introduced.  In  many  coconut  districts  there  seems  to  be  a 
desire  to  learn  better  methods. 

Copra  or  Oil 

Several  million  pesos  are  invested  in  coconut  oil  mills  in  the 
Philippines.  In  October,  1918,  there  were  eighteen  mills  in 
the  Philippines  equipped  to  produce  nearly  a  thousand  tons  of 
oil  a  day.  However,  they  were  producing  only  about  half  that 
amount,  for  the  number  of  expellers  had  so  increased  that  the 
domestic  supply  of  copra  did  not  provide  material  enough  to 
keep  them  in  operation.  In  1918  the  Philippines  imported 
copra  from  Singapore.^  The  country  has  become  an  exporter 
of  oil  instead  of  an  exporter  of  copra. 

In  general,  it  is  much  more  desirable  for  a  country  to  ex- 
port a  product  in  a  manufactured  or  semimanufactured  state 
than  in  the  raw  state.  The  exportation  of  oil  is  more  valuable 
to  the  Islands  than  the  exportation  of  copra ;  but  unless  legis- 
lative restrictions  are  imposed,  the  continuance  of  our  expor- 
tation of  coconut  oil  will  depend  on  competitive  conditions, 
that  is,  on  competition  for  copra  between  the  mills  of  Europe, 
America,  and  the  Philippines.  The  oil  mills  of  Europe  and 
America  will  naturally  attempt  to  secure  copra  from  the  Phil- 
ippines, and  will  offer  as  high  a  price  as  the  oil  market  will 
allow.  The  Philippine  mills  will  have  to  meet  this  price.  Can 
they  do  it  ?  The  answer  largely  depends  on  (1)  the  conditions 
of  transportation,  (2)  copra  cake,  (3)  the  markets  for  Phil- 
ippine coconut  oil,  and  (4)  the  conditions  of  labor  and  power 
in  the  Philippines.  The  situation  may  be  expressed  as  follows, 
in  terms  of  conditions  favorable  and  unfavorable  to  the  pro- 
duction of  coconut  oil  in  the  Philippines : 

1  In  the  first  six  months  of  1919  the  Philippines  exported  copra  to  the  vahie 
of  P  555,386  ;  the  imports  amounted  to  more  than  P 3,500,000. 


COPRA  AS  AN  EXPORT  CROP  123 

Unfavorable  Favorable 

Loss  of  oil  in  barrels,  or  cost  Loss  of  oil  in  transit  through 

of  maintaining  tank  steamers  and  decomposition  of  copra, 

tank  terminals.  Oil  taking  less  space  than  copra 

Loss  in  value  of  copra  cake.  in  proportion  to  its  value. 

Cost  of  power.  Labor. 

Copra  cake  is  a  valuable  by-product  of  the  mills  in  Europe 
and  America,  and  offsets  the  freight  on  the  copra.  To  Philip- 
pine mills  it  has  been  of  so  little  value  that  nearly  all  of  it 
has  been  burned  for  fuel. 

The  question  of  freight  rates  is  the  determining  factor.  The 
lower  the  rates,  the  less  advantage  oil  has  over  copra. 

There  is  a  chance  of  disaster  to  the  oil  industry  in  the  Phil- 
ippines when  freights  fall.  The  small  and  the  poorly  managed 
mills  may  be  forced  out  of  production.  The  larger  and  the 
better-managed  mills  will  have  a  better  chance,  especially  in 
the  domestic  market,  in  China,  and  on  the  Pacific  Coast  of 
the  United  States.  Ships  traveling  from  San  Francisco  to  the 
Orient  burn  crude  oil.  When  they  reach  Manila,  part  of  their 
fuel  tanks  are  empty,  and  can  be  filled  with  coconut  oil  for 
the  return  trip.  Tank  steamers  that  bring  petroleum  to  the 
Orient  may  take  back  cargoes  of  coconut  oil. 

Moreover,  as  world  conditions  become  adjusted,  Philippine 
oil  mills  must  face  competitive  conditions  so  far  as  labor  and 
power  are  concerned.  In  1919  the  situation  with  regard  to 
power  was  so  acute  that  mills  were  obliged  to  reduce  their 
hours  of  running,  especially  in  Manila,  where  most  mills  are 
dependent  on  electricity. 

The  future  of  the  oil  industry  in  the  Philippines  will  there- 
fore depend  largely  on  the  equipment  and  management  of  the 
mills,  their  facilities  for  loading  oil  on  steamers  in  Manila,  and 
the  facilities  provided  by  or  for  them  to  unload  and  store  oil 
in  the  ports  of  Europe  and  America. 

But  the  future  of  the  coconut  regions  of  the  Islands  is  bright 
in  any  case,  for  prices  of  coconuts  will  be  high,  whether  the 
export  takes  the  form  of  copra  or  of  oil. 


124  ECONOMIC  CONDITIONS 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

I.  Problems  of  the  coconut  industry  in  the  Philippines.  2.  If 
you  had  a  favorable  opportunity  to  buy  a  coconut  grove  that  would 
come  into  bearing  three  years  from  now,  would  you  purchase  it  ? 

3.  Why  does  an  increase  in  the  price  of  copra  not  result  in  a 
large  immediate  increase  in  the  production  of  copra?  4.  Is  this 
true  of  rice  ?  Why  ?  5.  Nevertheless,  an  immediate  increase  in 
the  production  of  copra  can  be  effected  by  reducing  the  production 
of  other  coconut  products.  What  products  are  these  ?  6.  Causes 
for  the  general  increased  demand  for  copra. 

7.  What  is  the  comparative  quality  of  Philippine  copra  ?  8.  How 
may  it  be  improved  ? 

9.  Why  were  war  conditions  favorable  to  the  establishment  of 
coconut-oil  factories  in  the  Philippines  ?  10.  You  are  offered  the 
opportunity  of  investing  in  a  new  coconut-oil  factory  to  be  estab- 
lished in  Manila.  You  are  looking  for  an  investment.  W^ill  you 
invest  in  the  oil  factory  ?    Why  ? 

II.  The  relative  importance  of  the  four  great  export  crops  of 
the  Philippines  (based  on  Chart  XI).  12.  From  Chart  XI  com- 
pare the  early  histories  of  the  hemp  and  coconut  industries. 

Suggestions  for  the  Study  of  Local  Conditions 

1.  How  the  General  Order  38  of  the  Bureau  of  Agriculture, 
concerning  bud  rot,  is  made  effective.  2.  The  relation  of  this  order 
to  Act  1757. 

3.  How  copra  is  made.  4.  Oil  presses.  5.  Uses  for  coconuts. 
6.  Uses  for  coconut  oil. 

Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  From  the  latest  "  Statistics  on  Principal  Crops  of  the  Phil- 
ippine Islands  "  prepare  a  chart  representing  the  amount  of  copra 
produced  in  the  Philippines.  2.  Divide  the  amount  into  parts  rep- 
resenting the  production  of  the  chief  copra-producing  provinces. 
3.  Compare  these.  4.  Using  these  data  and  referring  to  Miller's 
"  Commercial  Geography"  and  Miller  and  Policy's  ''  Intermediate 


COPRA  AS  AN  EXPORT  CROP  125 

Geography,"  prepare  a  map  of  the  Philippine  Islands  which  will 
indicate  the  copra-producing  regions. 

5.  Explain  why  coconuts  are  not  grown  extensively  in  other 
regions.  6.  By  comparing  the  number  of  planted  trees  with  the 
number  bearing  fruit  estimate  what  will  be  the  production  of 
copra  in  the  Islands  seven  years  hence.  7.  Make  a  chart  repre- 
senting the  total  number  of  trees  planted  in  the  Philippines,  and 
divide  it  into  sections  representing  the  trees  planted  in  the  prin- 
cipal provinces.  8.  Will  there  be  any  important  changes  in  the 
proportion  of  copra  produced  in  the  various  provinces  seven  years 
from  now  ?  9.  What  provinces  could  increase  their  production 
by  decreasing   the  local   consumption   of  nuts,  oil,  and   tuba? 

10.  Secure  the  necessary  data  from  the  latest  annual  reports 
of  the  Collector  of  Customs,  and  bring  Charts  VIII,  X,  XI,  XII 
down  to  the  present  time.    11.  Comment  on  these  new  figures. 

12.  Comment  on  the  importation  of  copra  into  the  Philippines. 

13.  Where  is  Philippine  copra  now  sent  ?  14.  Make  a  chart  show- 
ing the  amounts  of  copra  and  oil  exported  from  the  Philippines 
since  1912,  and  the  prices  of  copra  and  oil. 

15.  Make  a  chart  showing  the  uses  of  the  coconut  palm. 

16.  The  difference  between  oils  and  fats.  17.  The  kinds  of  oils 
as  to  source  and  use.    18.  Fixed  and  volatile  oils.    (Miller.) 

19.  The  uses  of  oils,  fats,  and  waxes.  20.  The  world's  produc- 
tion of  copra  and  the  commerce  in  it.    (Miller.) 

21.  The  dairy  industry  of  the  world,  and  its  relation  to  coconut 
oil.    (Miller,  and  other  commercial  geographies.) 

22.  Coconut  oil  used  in  imitation  lard,  salves,  lotions,  and  soap. 

23.  Vegetable  and  animal  oils  and  fats.  24.  Where  produced  and 
used  (illustrated  with  maps).  25.  International  trade.  26.  The 
substitution  of  one  for  the  other.  27.  The  oil  industry  of  Mar- 
seilles, France.  28.  Uses  for  coconut-oil  cake.  (Miller;  Finch 
and  Baker;  and  other  commercial  geographies.) 

29.  The  manufacture  and  uses  of  desiccated  coconut. 

Selections  on  the  Theory  of  Econo:mics  to  be  applied 
TO  the  Material  in  the  Chapter 

1.  The  laws  of  consumption.    (Bullock,  pages  13-21.) 

2.  The  law  of  economy  in  organization.  (Bullock,  pages  82-91.) 

3.  The  laws  of  supply.    (Bullock,  pages  91-96.) 


CHAPTER  YII 

SUGAR  AS  AN  EXPOET  CROP^ 
Early  History 

Sugar  cane  is  not  known  as  a  wild  plant,  but  its  early  home 
was  probably  in  Bengal  or  Cochin  China ;  botanic,  linguistic, 
and  historic  facts  support  this  theory.  Sugar  was  first  men- 
tioned ^  in  Chinese  writings  of  the  second  century  before  Christ. 
In  the  eighty-sixth  year  of  the  Christian  Era  the  kingdom  of 
Funan  sent  a  tribute  of  sugar  to  an  emperor  of  the  powerful 
Han  dynasty  then  ruling  China.  In  the  seventh  century  the 
Chinese  emperor  Taitsong,  carrying  out  a  well-defined  policy 
for  increasing  the  prosperity  of  the  realm,  sent  a  man  to  the 
Indian  province  of  Bahur  to  study  the  methods  of  sugar 
making.  The  embassy  seems  to  have  been  successful ;  for 
when  Marco  Polo  visited  China,  six  centuries  later,  he  found 
that  large  quantities  of  sugar  were  being  produced.  The  in- 
dustry flourished  in  other  parts  of  the  East  also.  Vasco  da 
Gama,  visiting  Calicut  in  1498,  found  the  sugar  trade  of  that 
port  worthy  of  special  mention. 

While  the  sugar  industry  was  thus  becoming  well  developed 
in  the  East,  a  definite  knowledge  of  the  product  was  advanc- 
ing westward,  largely  through  the  agency  of  Greeks,  Saracens, 
and  Venetians.  In  327  b.  c.  Alexander  the  Great  invaded 
India,  and  is  said  ''  to  have  feasted  on  solid  honey,  not  made 
by  bees,  which  was  procured  from  the  stem  of  a  reed."  The 
Greeks  called  the  new  substance  "  Indian  salt." 

According  to  Seneca  and  Pliny  the  Elder  the  fame  of  both 
India  and  Arabia  as  producers  of  sugar  was  well  established  in 
Europe  by  the  first  century  of  the  Christian  Era,  although  but 

1  By  Charles  H.  Storms. 

2  W.  C.  Stubbs's  "Sugar  Cane." 

126 


SUGAR  AS  AN  EXPOKT  CROP  127 

few  Europeans  had  at  that  time  ever  tasted  the  substance. 
The  Saracens  carried  the  cane  with  them  in  their  advance 
across  northern  Africa.  Through  the  Saracens  the  Venetians 
became  interested  in  sugar  as  a  commercial  product.  These 
two  peoples  introduced  the  culture  into  Arabia,  Egypt,  Nubia, 
Ethiopia,  Sicily,  and  Spain.  By  the  end  of  the  thirteenth  cen- 
tury the  sugar  industry  was  well  known  in  China  and  India, 
and  in  the  countries  surrounding  the  Mediterranean  Sea. 
Sugar  was  not  unknown  in  England,  but  was  still  regarded 
somewhat  as  a  curiosity. 

In  the  Middle  Ages  the  city  of  Venice,  then  the  commercial 
leader  of  the  world,  became  the  center  of  the  sugar  industry. 
The  Venetians  carried  the  sugar  trade  into  England.  In  1319 
was  recorded  the  first  sugar  trade  in  the  English  market,  in 
which  a  hundred  thousand  pounds  of  sugar  was  exchanged 
for  wool.  At  that  time  sugar  was  valued  in  Scotland  at  from 
seventy-five  to  eighty  centavos  a  pound.^  In  1912  the  price 
had  fallen  to  eight  or  ten  centavos  a  pound. 

Even  at  this  early  age  the  Venetians  recognized  the  possi- 
ble advantages  to  be  derived  from  improved  methods  of  pro- 
duction, and  rich  prizes  were  offered  to  stimulate  inventive 
ability.  The  Venetian  inventor  of  the  art  of  making  loaf  sugar 
received  a  reward  of  a  hundred  thousand  crowns.  In  1503 
the  Venetians  introduced  into  Europe  the  art  of  refining  sugar. 

Thus  during  a  period  of  fifteen  hundred  years  the  Indians, 
Chinese,  Saracens,  and  Venetians  each  played  an  important 
part  in  the  advancement  of  the  sugar  industry.  The  industry 
then  fell  into  the  hands  of  the  rising  powers  of  Spain  and  Por- 
tugal. In  1425  Dom  Henry  of  Portugal  sent  seed  canes  to 
the  Canary  and  Madeira  islands.  After  the  discovery  of  Amer- 
ica, Peter  Etienza  sent  cuttings  to  the  island  of  Santo  Domingo, 
from  which  cane  was  carried  to  Mexico,  South  America,  and 
northward  into  the  newly  opened  territory  of  Louisiana.  For 
three  hundred  years,  however,  the  Canary  and  Madeira  islands 
furnished  a  large  part  of  the  sugar  supply  of  Europe. 

1  "Sugar  in  Louisiana,"  Century  Magazine.Yol.  XXXV,  November,  1887. 


128  ECONOMIC  CONDITIONS 

Until  the  latter  part  of  the  sixteenth  century  sugar  was 
used  principally  as  a  medicine.  The  demand  was  therefore 
limited,  but  in  1575  it  was  greatly  increased  by  the  intro- 
duction of  coffee,  and  in  1650  by  the  introduction  of  tea.  The 
failure  of  the  mines  in  the  New  World  had  caused  a  large 
number  of  disappointed  seekers  after  wealth  to  turn  to  other 
enterprises,  of  which  sugar  production  was  by  far  the  most 
attractive.  The  climate  and  the  soil  of  the  West  Indies  were 
known  to  be  well  adapted  to  the  growing  of  sugar  cane.  Indian 
slaves  were  first  used  for  laborers,  and  then  negro  slaves  were 
imported ;  to  quote  from  Bourne,  ''  The  development  of  the 
sugar  industry  and  the  growth  of  slavery  were  dependent  on 
each  other.  Each  sugar  mill,  run  by  horses  or  mules,  required 
thirty  or  forty  negroes.  Each  water  mill  required  at  least 
eighty  negroes." 

In  1595  a  company  contracted  with  the  government  of 
Spain  for  the  exclusive  right  of  impoi'ting  slaves  into  the 
Antilles  for  a  period  of  nine  years. ^  They  paid  the  govern- 
ment 900,000  ducats  for  this  monopoly .2  From  1680  to  1786 
more  than  2,100,000  Africans  were  imported,  largely  for  use 
on  the  plantations.  Sugar  brought  a  high  price  in  the  European 
markets,  and  the  trade  grew  rapidly.  The  port  duties  on 
Haitian  sugar  alone  are  said  to  have  built  many  magnificent 
buildings  in  Madrid  and  Toledo.^ 

The  many  European  wars  of  the  eighteenth  century  forced 
Spain  and  Portugal  into  the  background  among  the  world 
powers.  England  became  the  mistress  of  the  sea  and  the 
leader  of  the  commercial  world.  The  control  of  the  sugar 
supply  of  Europe  passed  from  Spain  to  England,  where  it  was 
destined  to  remain  until  Napoleon  should  develop  plans  tO 
bring  about  a  world-wide  distribution  of  the  industry. 

1  E.  G.  Bourne's  "  Spain  in  America,"  p.  273. 

2  Ibid. 

*  Freeman  and  Chandler's  "  World's  Commercial  Products,"  p.  84. 


SUGAR  AS  AN  EXPORT  CROP  129 

Beet  Sugar  and  the  Bounty  System 

This  wide  distribution  came  about  through  the  perfection 
of  a  process  for  extracting  the  sugar  content  of  beets.  Al- 
though the  sugar  beet  had  been  known  to  European  farmers 
for  more  than  two  hundred  years,  a  practical  method  of  ex- 
tracting the  sugar  was  at  that  time  a  comparatively  recent 
discovery,  and  its  possibilities  were  not  generally  known.  ^ 
The  Continental  sugar  supply  was  greatly  reduced  as  a  result 
of  the  Berlin  Decree  (1805)  and  the  Milan  Decree  (1807), 
since  they  caused  the  English  to  blockade  the  European  ports 
under  Napoleon's  control.  Napoleon  planned  to  supply  the 
consumers  of  continental  Europe  with  sugar  from  the  sugar 
beet,  and  applied  the  stimulus  necessary  to  insure  its  cultiva- 
tion. By  Napoleon's  orders  about  eighty  thousand  acres  were 
planted  with  beets.  The  price  of  sugar  in  European  markets 
was  rapidly  advancing.  The  production  of  sugar  from  the 
beet  offered  an  attractive  and  lucrative  occupation  to  many 
of  the  inhabitants  of  France  and  of  the  German  states,  and  the 
beet-sugar  industry  became  important  in  these  countries. 

The  overthrow  of  Napoleon  removed  the  restrictions  on 
trade,  and  consequently  the  price  of  sugar  declined  to  a  point 
at  which  many  of  the  farmers  could  not  profitably  raise  beets. 
A  few  farmers  in  France  persisted,  however,  and  some  French- 
men continued  to  manufacture  sugar.  They  were  able  to  com- 
pete with  cane-growing  countries  because  of  their  improved 
methods  of  cultivation  and  manufacture.  The  industry  was 
not  important,  however,  and  in  1829  a  production  of  only  four 
thousand  tons  was  reported.  In  1835  the  industry  was  revived 
in  Germany,  and  after  1840  made  a  rapid  advance.    In  1884 

1  In  1590  Oliver  des  Senes  records  the  introduction  of  the  red  beet  into 
Europe  ;  in  1747  Marggi-af  obtained  sugar  from  beets,  but  at  an  enormous 
expense  ;  in  1797  Achard  invented  a  simpler  method  of  extracting  sugar  from 
beets  ;  in  1805  Baron  de  Koppy  built  a  factory  in  Lower  Silesia,  the  annual 
output  of  which  was  to  be  525  tons ;  in  1810  Achard  built  a  factory,  produc- 
ing muscovado  at  a  cost  of  Is.  6d.  a  pound,  and  white  sugar  at  Is.  8d.  a  pound 
(Freeman  and  Chandler,  "The  World's  Commercial  Products,"  pp.  103-108). 


130 


ECONOMIC  CONDITIONS 


1836 


1850        1860        1889        1906 


TONS 

18 


16 


12 


10 


the  bounty  system  was  adopted  by  Germany,^  and  other  coun- 
tries of  contmental  Europe  quickly  followed  her  example. 

The  plan  for  encouraging  the  production  of  sugar  varied 
somewhat  in  different  countries,  but  the  essential  features  were 

the  same.  The  government 
placed  a  heavy  tax  on 
manufactured  sugar ;  but  if 
the  product  was  presented 
for  export,  this  tax  was 
returned  and  in  addition 
a  present  was  given  the 
grower  for  each  ton  ex- 
ported. Under  the  French 
law  sugar  used  at  home 
cost  the  grower  (the  taxes 
included)  about  F0.17|  a 
pound.  Sugar  for  export 
cost  from  P0.076  to 
P 0.096  a  pound  because 
of  the  rebate.^ 

The  results  of  the  bounty 
system  may  be  briefly 
stated.  The  amount  of 
beet  sugar  exported  was 
more  than  doubled  in  five 
years.  Of  the  sugar  found 
in  the  world's  markets  at 
that  time  about  three  fifths 
came  from  the  sugar  beet. 
Germany  in  1881  pro- 
duced about  645,000  tons  of  sugar;  in  1885  the  yield  was 
1,150,000  tons.    Of  still  greater  importance  was  the  fact  that 

1  Encyclopaedia  Britannica,  XXII,  625. 

2  Beets  producing  7^  per  cent  of  their  weight  in  sugar  were  taxed  at 
$0.06^  a  pound.  Beets  producing  from  7^  to  10^  per  cent  were  taxed  at  half 
this  rate.  Beets  producing  more  than  lOJ  per  cent  were  taxed  at  one  quarter 
pf  this  rate  (French  law  of  1884), 


CHART  XV.  AMOUNT  OF  SUGAR  BEETS 

NECESSARY    TO    PRODUCE    ONE    TON 

OF  SUGAR 

Data  from  Farmers'  Bulletin  No.  93 


SUGAR  AS  AN  EXPORT  CROP  131 

world-wide  attention  was  drawn  to  the  beet-sugar  industry, 
and  the  aid  of  experts  was  enHsted  in  an  effort  to  lower 
the  cost  of  production.  In  about  fifty  years  the  yield  per 
ton  of  sugar  from  beets  was  advanced  from  five  to  twelve  or 
fifteen  per  cent.^  The  use  of  the  diffusion  process  of  extract- 
ing the  sugar  assisted  materially  in  securing  this  result.  Per- 
haps careful  seed  selection  was  of  even  greater  importance. 

The  bounty  system  proved  of  unexpected  assistance  to  the 
people  of  England,  because  the  French  and  German  consumers 
had  to  pay  about  twelve  centavos  more  a  pound  for  sugar 
than  their  near  neighbors,  the  English.  The  latter  were  quick 
to  use  this  advantage.  The  English  farmers  devoted  their 
lands  to  the  production  of  fruits  and  berries,  and  the  capital- 
ists erected  huge  factories  for  canning  fruits  and  manu- 
facturing jellies,  jams,  and  candies.  It  is  estimated  that  these 
factories  furnished  employment  for  more  than  250,000  people.^ 
All  continental  Europe  was  forced  to  purchase  its  sweets  from 
the  English. 

Hence  the  local  consumers  in  continental  Europe  had  cause 
for  complaint.  They  had  to  pay  PO.20  a  pound  for  sugar, 
while  across  the  Channel  in  England  the  same  article  could 
be  purchased  for  PO.08.  The  English  cane-growing  colonies 
also  complained  because  the  bounty-fed  sugar  had  stolen  from 
them  the  home  market. 

This  state  of  affairs  seemed  unnatural  in  every  way  and 
could  not  be  indefinitely  continued.  After  a  time  public  opinion 
outweighed  the  influence  of  the  beet  growers  and  the  English 
manufacturers  of  sugared  products.    In  1892  England  called 

1  In  1836  it  took  18  T.  beets  for  1  T.  sugar. 
In  1850  it  took  13.8  T.  beets  for  1  T.  sugar. 
In  1860  it  took  12.7  T.  beets  for  1  T.  sugar. 
In  1889  it  took  9.25  T.  beets  for  1  T.  sugar. 
From  5  per  cent  of  sugar,  as  found  by  Marggraf ,  the  sugar  beet  of  good 
quality  has  increased  to  15  per  cent  and  more,  and  12  per  cent  is  considered 
necessary  for  profitable  manufacture  (Mary  Hinman  Abel,  Bulletin  9S,  1906, 
Bureau  of  Agriculture,  Washington,  D.C.). 

2  Review  of  Reviews,  XXVII  (February,  1903),  227  ;  Scientific  American 
(Supplement),  LV,  22,  734. 


132  ECONOMIC  CONDITIONS 

a  conference,  at  Brussels.  Representatives  of  the  powers  at- 
tended. A  union  of  the  important  countries  producing  beet 
sugar  was  formed,  and  a  plan  of  action  was  ratified.  It  was 
decided  to  abolish  the  bounty  system  and  establish  a  uniform 
customs  duty  of  PO.IO  on  raw  sugar  and  pO.ll  on  refined 
sugar. ^  Russia  alone  did  not  consent  to  this  plan,  because 
under  the  bounty  system  the  Russian  sugar  industry  was  de- 
veloping at  an  amazing  rate.  Some  countries  still  levy  a  duty 
on  Russian  sugar  equal  to  the  amount  paid  by  the  government 
to  Russian  beet  growers.  In  1907,  however,  Russia  was  ad- 
mitted to  the  union  with  the  understanding  that  Russian  sugar 
exports  westward  were  not  to  exceed  200,000  tons  a  year. 
In  1912  arrangements  were  made  for  supplementary  exports 
of  sugar  in  case  of  shortage  in  European  markets.  The  French 
and  German  sugar  producers  do  not  now  receive  a  bounty, 
for  they  have  reduced  beet-sugar  production  to  an  economi- 
cal basis  not  yet  obtained  by  the  majority  of  the  cane-sugar 
producers.  The  modern  beet-sugar  factory  is  a  marvelous  ex- 
ample of  a  productive  organization  in  which  waste  has  been 
reduced  to  a  negligible  factor.^  It  is  probable  that  the  Conti- 
nental countries  will  revert  to  a  modified  form  of  the  bounty 
system  if  changing  conditions  should  make  a  bounty  a  necessity 
for  the  beet  growers. 

Decline  of  the  Cane-Sugar  Industry 

While  science,  wealth,  and  statesmanship  were  uniting  to 
establish  securely  the  beet-sugar  industry,  a  far  different  state 
of  affaii-s  existed  in  the  West  Indies,  then  the  chief  source  of 
supply  of  the  sugar  from  cane.  The  position  of  the  planters 
there  will  be  understood  after  a  brief  glance  at  their  history 
in  the  nineteenth  century.  During  the  early  part  of  the 
eighteenth  century  England  controlled  the  sugar  market  of 

1  Scientific  American  (Supplement),  LV,  22,  734. 

2  For  a  description  and  details  of  the  manufacturing  system,  see  Miller's 
"Commercial  Geography,"  p.  29  ;  and  Newsom  and  Walker's  "Handbook 
on  the  Sugar  Industry  of  the  Philippine  Islands." 


SUGAE  AS  AK  EXPOET  CHOP  133 

the  West  Indies.  The  industry  at  that  time  yielded  immense 
profits,  because  the  conditions  were  favorable.  The  profits  were 
invested,  or  squandered,  abroad.^  The  planters  made  little 
attempt  to  prepare  for  periods  of  depression.  In  1834  the 
English  government  proclaimed  the  emancipation  of  the  West- 
Indian  slaves.  This  was  a  blow  to  the  planters  because  they 
understood  no  labor  but  slave  labor.^  The  measure  of  self- 
restraint  necessary  in  dealing  with  free  laborers  had  never 
been  practiced  by  them,  and  troubles  between  planters  and 
laborers  often  arose  because  of  the  violence  of  one  or  both  par- 
ties. Moreover,  the  negroes  did  not  know  how  to  labor  as  free 
men.  They  were  careless  of  their  contracts  with  the  planters, 
and  often  at  a  critical  period  would  not  labor  at  all  unless 
paid  a  large  additional  sum.  Thus  they  discouraged  their  em- 
ployers and  destroyed  their  own  means  of  obtaining  a  decent 
livelihood.  The  government  paid  about  P200,000,000  for  the 
slaves.  This  money  the  planters  expended  abroad  also,  and 
when  labor  and  other  troubles  made  ready  money  a  necessity, 
they  were  almost  bankrupt.  The  usurers  supplied  the  money, 
but  at  ruinous  rates. 

Political  disturbances  were  of  frequent  occurrence  in  Cuba 
during  this  period.  Sugar  mills  were  burned,  and  lands  were 
laid  waste  by  opposing  armies.  These  losses  ruined  many 
planters  and  disheartened  others.  The  revival  of  the  beet-sugar 
industry  in  Central  Europe  gave  a  sugar  supply  greater  than 
the  immediate  demand,  and  the  West-Indian  product  was 
crowded  out  of  the  market.  Because  of  this  condition  and  of 
antiquated  methods  the  planters  could  not  make  sugar  in  com- 
petition with  the  energetic,  resourceful  producers  of  beet  sugar. 
In  the  face  of  a  most  dangerous  rival  the  colonial  governments 
and  the  planters  assumed  for  a  time  a  listlessness  which  seemed 
to  indicate  the  ruin  of  the  industry.  The  production  decreased 
at  an  alarming  rate. 

1  Morris's  "  History  of  Colonization,"  II,  57-58. 

2  Ibid.  p.  197. 


134  ECONOMIC  co:nditions 

Restoration  of  the  Cane-Sugar  Industry 

Early  in  the  twentieth  century,  however,  we  find  cane  growers 
united  in  an  attempt  to  reestablish  their  product  in  its  old- 
time  position  in  the  world's  market.  Indeed,  sugar-cane  grow- 
ers throughout  the  world  are  now  adapting  to  local  needs 
many  of  the  devices  of  the  beet-sugar  manufacturers.  They  are 
also  spending  fortunes  in  experimenting  with  new  processes 
looking  toward  the  elimination  of  waste.  Java,  Cuba,  and 
Hawaii  are  the  leaders  in  the  restoration  of  the  cane-sugar 
industry. 

Java  long  prospered  during  the  period  of  its  forced-labor 
system.  Even  during  that  period  the  sugar  industry  was  re- 
garded at  times  as  "  an  intolerable  burden."  ^  The  change  ^  to- 
free  labor  began  in  1870,  and  was  completed  in  1890.  Because 
of  ignorance  and  mismanagement  many  of  the  factories  were 
run  for  years  at  a  loss.  As  a  rule,  the  Javanese  are  slow  to 
adopt  new  methods,  but  a  marked  change  of  policy  has  been 
apparent  in  recent  years.  Their  sugar  estates  are  large,  and 
mills  of  the  latest  model  have  been  installed.  In  1912  there 
were  nearly  two  hundred  mills  in  the  island.  They  exported 
more  than  750,000  tons  a  year  to  India,  China,  and  Japan, 
and  could  increase  the  amount  to  1,500,000  tons.  As  a  result^ 
of  the  Spanish-American  War,  much  of  the  Philippine  sugar 
formerly  sent  to  China  was  exported  to  America ;  Hongkong 
importers  thereafter  supplied  the  deficiency  by  purchasing 
annually  from  Java  a  constantly  increasing  amount.^ 

Before  1887  the  best  Cuban  mills  extracted  sixty-three  per 
cent  of  the  juice  of  the  cane.  Modern  mills  now  installed 
exert  a  pressure  of  five  hundred  tons  to  the  square  inch,  ex- 
tracting ninety-five  per  cent  of  the  juice,  and  leaving  the 
bagasse  practically  dry.  In  1909  one  Cuban  company  threw 
out  comparatively  new  machinery,  costing  nearly  a  quarter  of 

1  Annual  Report  of  the  Governor  General  of  Java,  1834. 

2  Day's  "The  Dutch  in  Java,"  p.  393. 

*  The  Louisiana  Planter  and  Sugar  Manufacturer,  August  6,  1910. 

*  The  International  Sugar  Journal,  XIII,  147. 


SUGAE  AS  AK  EXPOKT  CEOP  135 

a  million  dollars,  to  install  the  newest  model.  The  same  com- 
pany operates  fifty  miles  of  railroad  through  its  fields.  The 
cane  is  not  touched  by  the  laborers'  hands  from  the  time  that 
it  is  placed  on  the  freight  car  in  the  field  until  the  ash  of  the 
bagasse  is  removed  from  beneath  the  furnace.  Thus  it  is  evi- 
dent that  a  modern  cane-sugar  mill  is  an  expensive  affair. 
The  opening  up  of  new  estates  in  Cuba,  and  the  enlarging  of 
the  cultivated  area  of  the  older  estates,  would  indicate  the 
promise  of  satisfactory  profits. 

Hawaii  is  probably  the  most  prosperous  of  the  three  lead- 
ing sugar-producing  countries.  Her  planters  have  keen  busi- 
ness ability  combined  with  energy  and  forethought.  Where 
conditions  have  been  unfavorable,  they  have  procured  the 
necessary  changes.  They  unite  to  expend  vast  sums  on  ex- 
periments. They  employ  the  most  economical  methods  of 
growing,  handling,  and  treatiQg  the  cane.  As  examples  may 
be  cited  a  recently  perfected  process  for  the  rapid  clarifica- 
tion of  sugar  and  a  new  system  of  recovering  the  sugar 
formerly  wasted  in  the  molasses.^  On  many  estates  the  canes 
are  floated  to  the  mills  in  channels  of  running  water,  which 
may  also  be  used  to  irrigate  the  fields.  The  cost  of  production 
in  Hawaii  is  said  to  be  lower  than  in  Java  or  Cuba.  Hawaiian 
sugar  enters  the  United  States  duty  free,  a  privilege  which  in 
1914  was  worth  about  $10,000,000  to  the  Hawaiian  planters.^ 

The  sugar  mills  of  Formosa  are  of  interest  to  the  people  of 
the  Philippines,  since  the  Formosan  planters  are  their  nearest 
and  most  favored  competitors.  The  sugar  industry  was  im- 
portant in  Formosa  long  before  the  days  of  Koxinga.  Koxinga, 
the  Dutch,  and  the  Chinese  all  gave  it  some  encouragement. 
In  1902  the  Japanese  government  enacted  very  favorable  laws, 
which  included  the  lease  of  government  land,  rent  free,  finan- 
cial aid  to  enterprises  employing  the  most  modern  methods 
of  culture  and  manufacture,  and  modem  sugar  mills  erected 
and  lent  to  the  planters. 

1  Far  Eastern  Beview  (December,  1911),  Vol.  VIII,  No.  7. 

2  Taussig's  "  Some  Aspects  of  the  Tariff  Question,"  p.  69. 


136  ECONOMIC  CONDITIONS 

This  policy  of  government  aid  has  produced  revolutionary- 
changes  in  the  methods  employed,  since  the  government  will 
extend  assistance  only  to  those  planters  who  make  use  of 
every  approved  modern  device  for  reducing  the  cost  per  kilo 
of  the  sugar  produced.  Formosa  has  thus  acquired  a  modern 
system  of  production  without  passing  through  a  long  and 
costly  period  of  experimentation  and  failure.  This  result  has 
been  attained  by  a  careful  study  of  the  methods  employed  in 
different  countries  throughout  the  world,  and  by  the  selection 
and  adaptation  of  methods  which  seemed  best  suited  to  the 
needs  of  the  Formosan  planters.  At  one  step  the  old  three- 
roller  mills  with  animal  power,  and  the  hand  ladle  for  trans- 
ferring the  sucrose,  have  been  replaced  by  the  twelve-roller 
steam  mill  and  the  electrically  driven  pump. 

History  of  Sugar  in  the  Philippines 

There  are  no  reliable  data  concerning  the  introduction  of 
sugar  cane  into  the  Philippines.  The  suggestions  have  been 
made  that  certain  varieties  came  from  Java,  others  from 
Formosa,  and  at  least  one  variety  from  Tahiti,  brought,  pre- 
sumably, by  the  Spanish.^  In  some  regions  the  primitive 
implements  used  in'  cane  culture  still  bear  Chinese  names ; 
this  suggests  that  the  Chinese  had  much  to  do  with  the 
establishment  of  the  industry  in  the  Islands. 

For  three  hundred  years  after  the  arrival  of  the  Spanish, 
Philippine  sugar  was  of  little  commercial  importance.  Sugar 
growing  was  confined  to  the  provinces  of  Pampanga,  Batangas, 
Cavite,  Cebu,  Iloilo,  and  Negros.  Finally  disturbances  in  dis- 
tant sugar-producing  areas  interfered  with  the  world's  supply, 
and  created  a  demand  for  the  Philippine  product.  During 
the  Crimean  War  this  demand  caused  local  prices  to  advance 
to  111  and  $12  (Mexican)  per  picul  of  137J  pounds.  Although 
this  price  did  not  hold  for  any  length  of  time,  it  served  to 
draw  the  attention  of  sugar  brokers  to  the  Philippines  as  a 

1  Philippine  Census,  IV,  26. 


SUGAR  AS  AN  EXPORT  CROP 


137 


possible  source  of  supply.  The  opening  of  the  Suez  Canal,  in 
the  year  1869,  also  added  greatly  to  the  importance  of  the 
Philippine  sugar  fields,  since  it  opened  up  a  more  direct 
route  between  the  Orient  and  the  Western  World,  and  thus 
reduced  the  distance  from  Manila  to  Liverpool  to  less  than 
ten  thousand  miles.  The  general  effect  which  this  had  on  the 
sugar  industry  in  the  Islands  may  be  seen  in  Chart  XVI. 


i 

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I  I 

1 1 

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M 

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1  i 

1  g  \ 

1  i  i 

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I  s  ; 

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V 

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r 

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7 

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0 

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1 

^ 

CHART  XVI.    PHILIPPINE  SUGAR  EXPORTS ;  QUANTITY  IN 
THOUSANDS  OF  TONS 

Census  and  Customs  Statistics 


In  1877  a  British  firm  established  a  sugar  central  at 
Mandaluyon,  on  the  Pasig  River,  about  three  miles  from 
Manila.  The  plan  was  to  lay  pipes  from  such  mills  as  were 
in  the  more  immediate  neighborhood,  and  pump  the  cane 
juice  to  the  central.  A  fleet  of  schooners  was  equipped  with 
tanks  to  bring  the  juice  from  the  mills  situated  at  a  greater 
distance  from  the  central.  It  was  hoped  to  extend  this  serv- 
ice as  far  as  the  Visayan  Islands.  The  mill  turned  out  to  be 
an  unprofitable  investment,  and  in  1880  its  doors  were  closed.^ 

1  Foreman's  "The  Philippine  Islands,"  old  edition,  p.  312. 


138      •  ECONOMIC  CONDITIONS 

In  1893  the  total  production  of  sugar  was  300,000  tons,  of 
which  261,686  tons  were  exported.^  The  supply  came  from 
eighteen  provinces,  with  the  island  of  Negros  far  in  the  lead. 
Conditions  in  Negros  at  this  time  were  ideal.  Labor  was 
cheap.  There  were  plenty  of  work  animals.  When  necessary, 
American  and  English  firms  supplied  the  working  capital. 
The  methods,  however,  were  primitive  and  wasteful. 

In  1897  there  were  in  the  Archipelago  three  thousand  plan- 
tations, each  with  a  small  milh  In  Luzon  the  share  system 
was  popular.  The  landowner  not  only  leased  to  the  tenant  as 
much  land  as  he  individually  could  care  for,  but  also  provided 
carabaos,  wooden  plows,  and  other  farming  implements.  The 
tenant  received  from  one  third  to  one  half  of  the  sugar,  but 
the  cost  of  crushing  the  cane  and  making  the  sugar  was  de- 
ducted from  his  share.^  In  the  southern  islands  the  laborer 
received  a  stipulated  daily  wage,  usually  from  P0.20  to  P0.50. 
Many  children  found  employment  in  the  cane  fields. 

Persistence  of  Antiquated  Philippine  Methods 

Since  1897  the  sugar  industry  described  above  has  not  been 
profitable.  All  productive  work  was  demoralized  during  the 
political  disturbances  of  1895-1899,  a  period  for  which  we 
have  little  reliable  data.  In  1901  the  exports  were  only  one 
third  of  those  of  ten  years  before,  and  the  renewed  activity 
shown  in  other  kinds  of  work  is  not  found  to  the  same  degree 
in  the  sugar  industry.  The  reason  for  this  is  plain.  While 
the  planters  in  other  countries  had  been  reducing  the  cost  of 
production,  usually  by  increasmg  the  number  of  tons  per  acre 
obtained  from  the  original  expenditure,  the  planter  in  the 
Philippines  had  faced  a  gradually  increasing  cost  per  ton  of 
sugar.    Indeed,  the  cost  for  the  average  farmer  was  nearly 

1  In  1893  the  United  States  and  Canada  took  about  thirty  per  cent  of  the 
exports ;  Great  Britain  took  thirty-seven  per  cent ;  the  rest  was  divided 
between  China  and  Japan,  with  the  exception  of  a  small  shipment  to  the 
continent  of  Europe  (Census  of  the  Philippine  Islands,  IV,  30). 

2  Foreman's  "  History  of  tlie  Philippines,"  p.  313. 


SUGAR  AS  AN  EXPORT  CROP 


139 


twice  as  much  as  it  had  been  twenty  years  before,  whereas 
the  price  of  sugar  in  the  world's  market  continued  to  be 
held  fairly  steady  because  of  the  competition  which  existed 
between  the  cane-sugar  and  the  beet-sugar  interests.^  . 

The  fluctuations,  decline,  and  rise  in  the  price  of  sugar 
produced  in  the  Philippine  Islands  may  be  seen  by  looking 


00        00      00 


32 


24 


20 


;h   . 

-4       1- 

H          , 

4  ;i 

i    ; 

H        - 

H     ^ 

■4     ■  ^ 

H    i- 

H        ^ 

H         t- 

^          ; 

H        ^ 

-t         ^ 

H       t^ 

4        r- 

H          »■ 

^       ^ 

1918 

X=  Price  of  Centrifugal  Sugar  18.2  cts. 
^=  Price  of  Brown  Sugar             9.5  cts. 

A 

/v 

\ 

/ 

V 

^ 

\ 

/ 

/-> 

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I 

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A. 

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^ 

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V 

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■ 



^ 

V 

_/ 

V 

\ 

CHART  XVII.    PHILIPPINE  SUGAR  EXPORTS;  PRICE  PER  KILO 

Census  and  Customs  Statistics 

at  Chart  XVII.  From  1877  to  1895  the  downward  tendency 
in  the  price  of  Philippine  sugar  may  be  explained  by  the 
presence  in  the  world's  market  of  a  constantly  increasing 
quantity  of  beet  sugar. 

Many  reasons  for  the  increased  cost  of  producing  sugar  have 
been  given.  Among  those  mentioned  are  the  increasing  cost 
of  labor  and  of  work  animals,  the  necessity  for  borrowing 


1  The  Philippine  Census,  1903,  IV,  32. 


140  ECONOMIC  CONDITIONS 

money,  and  the  losses  due  to  drought  and  locusts.  A  reason 
more  weighty  than  any  of  these  is  that  the  planters  who  com- 
plain of  the  increased  cost  of  production  are  trying  to  use 
in  modern  times  and  under  modern  conditions  the  methods 
and  the  machinery  which  were  successful  during  the  earlier 
days  of  the  cane-sugar  industry.  For  example,  in  1911  sixty- 
four  mills  were  employed  to  grind  the  cane  from  two  thousand 
hectares  in  Central  Luzon.  Thirty-four  of  these  mills  were  run 
by  carabaos;  the  rest  were  small  steam  mills.  The  former 
obtained  about  half  of  the  cane  juice  ;  the  latter,  from  sixty  to 
sixty-five  per  cent  of  it.  The  product,  if  it  is  to  be  exported 
in  competition  with  that  from  other  countries,  must  be  able 
to  compete  with  the  product  from  mills  which  are  extracting 
at  least  ninety-five  per  cent  of  the  juice. ^ 

The  district  mentioned  is  fairly  typical  of  many  of  the  cane- 
planted  areas  of  the  Islands  to-day.  In  a  section  of  Iloilo 
Province  the  proportion  of  machines  which  are  worked  by 
animal  power  is  a  httle  larger;  the  number  of  hectares  per 
mill  is  about  the  same.^  The  sugar  which  these  mills  are 
producing  is  of  a  low  grade,  but  the  cane  as  a  rule  is  grown 
on  high-grade  sugar  lands. 

From  the  foregoing  pages  it  is  evident  that  although  the 
Philippines  had  modern  sugar  machinery  sixty  years  ago,  or 
about  the  time  of  the  Crimean  War,  for  various  reasons  they 
have  not  progressed  so  rapidly  as  other  producers  in  the  cane- 
growing  tropics.  During  the  past  twenty  years  the  gulf  has 
been  widening  rapidly.  A  revolution  in  methods  similar  to 
that  which  took  place  in  Formosa  was  needed  to  place  the 
Islands  among  the  sugar-producing  regions  of  world-wide  im- 
portance. The  first  measures  in  that  revolutionary  change 
have  already  been  taken ;  these  measures  have  been  adopted 
as  the  result  of  the  opening  of  a  new  sugar  market  for  the 
product  of  the  Philippines,  namely,  the  United  States. 

1  Economic  reports  by  James  H.  Bass,  Pampanga. 

2  Economic  reports  by  William  E.  Mack,  Iloilo. 


An  Antiquated  Boiling  Plant 


A  Modern  Central  on  Mindoro 
PHILIPPINE  SUGAR  MILLS 


142 


ECONOMIC  CONDITIONS 


I860 


1870 


1880 


1900 


Markets  for  Philippine  Sugar 

Very  early  in  the  history  of  the  Philippine  sugar  industry 
England  and  the  United  States  appeared  as  the  most  accept- 
able purchasers.  The  opening  of  the  Suez  Canal  was  an  im- 
portant factor  in  the  development  of  the  trade  with  the  former. 
The  European  buyers,  however,  did  not  greatly  care  for  our 
sugar  because  of  its  low  grade  and  the  consequent  high  cost 
of  refining  it.    With  the  appearance  in  European  markets  of 

large  quantities  of  high- 
grade  beet  sugar,  Philip- 
pine sugar  was  crowded 
out,  and  exporters  sought, 
in  China  and  Japan,  mar- 
kets which  could  not  pur- 
chase beet  sugar  because  of 
the  cost  of  transportation. 
Japanese  markets  were  of 
little  importance  to  the 
Phihppines  on  account  of 
the  rapid  development  of 
sugar   fields    in    Formosa. 


^ 



/\ 

/  \ 

1.. 

/ 

'^^•SB. 

•^% 

^s;:^^ 

J<INGDOM 

't..., 

^ 

^ 

CHART  XVni,  WORLD'S  SUGAR  PRICES 
After  Bartholomew 


The  Philippines  produced  low-grade,  cheap  sugar,  a  kind 
demanded  in  China.  A  little  of  the  best  of  our  muscovado 
could  be  taken  by  the  United  States.  The  prospects  for  the 
Philippine  sugar  industry  did  not  look  bright.  Then  came 
the  Payne  Bill  of  1909,  which  gave  the  Philippines  a  pre- 
ferred market  in  the  United  States;  Philippine  sugar  was 
admitted  free,  whereas  sugar  from  Cuba  and  Java  paid  a 
heavy  duty.^  Charts  XVI  and  XVII  indicate  the  increase  in 
the  production  and  the  price  of  sugar  from  1910  ;  Chart  XIX 
shows  how  our  best  sugar  was  diverted  from  China  and  Japan 
to  the  United  States.  Only  the  lowest  grades  continued  to  be 
sent  to  China. 


1  In  1912  the  American  tariff  on  sugar  of  96°  test  was  about  P65.488 
per  long  ton. 


SUGAR  AS  AN  EXPORT  CROP  143 

The  demand  in  the  United  States  is  not  for  muscovado,  but 
for  the  almost  pure  centrifugal  sugar  of  the  modem  centrals. 
Our  favorable  position  encouraged  capital  to  invest  in  sugar 
centrals  here.  Among  the  first  to  be  built  was  that  at  San  Jose, 
Mindoro.  Here  a  large  sugar  estate  has  been  developed,  and 
a  mill  built  to  handle  the  cane.  In  San  Carlos,  Occidental 
Negros,  another  type  of  central  has  been  in  successful  opera- 
tion. It  is  conducted  on  the  basis  of  mutual  contract;  the 
owners  grow  little  or  no  cane,  but  grind  for  the  neighboring 
planters,  taking  in  payment  less  sugar  than  was  formerly 
wasted  in  the  bagasse.^  Until  the  war  cut  off  the  supply  of 
machinery,  there  was  a  rapid  increase  in  the  number  of  centrals 
built  in  the  Islands.  The  centrals  in  the  table  on  the  following 
page  were  in  operation  in  1918. 

The  export  of  sugar  to  the  United  States  in  1917  (Chart 
XIX)  represents,  to  a  certain  extent,  the  centrifugal  output  of 
the  Islands.  During  the  World  War  freight  rates  were  so  high 
that  it  was  difficult  to  ship  muscovado ;  hence  most  of  it  was 
sent  to  Japan  and  China.  In  1918,  however,  the  United  States 
took  most  of  the  high-grade  muscovado  as  well  as  practically 
all  of  the  centrifugal  sugar. 

In  1918  about  64,000,000  kilos  of  centrifugal  sugar,  valued 
at  more  than  pll,700,000,  were  exported,  and  about  210,- 
000,000  kilos  of  raw  sugar,  valued  at  about  Pl9,800,000. 
The  centrifugal  sugar  was  worth  about  eighteen  centavos  a 
kilo ;  the  raw  sugar,  about  nine  centavos.  This  indicates  how 
much  money  the  Islands  are  losing  by  exporting  raw  instead 
of  centrifugal  sugar;  for  the  United  States  will  take  all  the 
centrifugal  sugar  we  can  produce. 

FUTUEE  OF  THE  PHILIPPINE  SUGAR  INDUSTRY 

The  two  markets  for  Philippine  sugars  are  both  encourag- 
ing :  China  and  Japan  for  raw  sugar,  and  the  United  States 
for  centrifugal  sugar. 

1  Newsom  and  Walker's  "  Handbook  on  the  Sugar  Industry  of  the  Phil- 
ippine Islands,"  p.  17. 


144 


ECONOMIC  CONDITIONS 


Daily 

Name  of  Factory 

Where  situated 

When 
built 

Capac- 
ity IN 

Tons  OF 
Cane 

Calamba  Sugar  Estate     .    . 

Canlubang,  Laguna 

1913 

1800 

San  Jos6  Milling  Co.    .    .    . 

San  Jos6,  Mindoro 

1910 

1000 

San  Carlos  Milling  Co.    .    . 

San  Carlos,  Negros  Occidental 

1914 

800 

North  Negros  Sugar  Factory 

Manapla,  Negros  Occidental 

1918 

600 

Bearing  Central 

Cabancalan,  Negros  Occidental 

1914 

500 

Philippine  Sugar  Dev.  Co. 

Calamba,  Laguna 

1914 

300 

De  La  Rama  Central  .    .    . 

Bago,  Negros  Occidental 

1913 

300 

Guanco  Central 

Hinigaran,  Negros  Occidental 

1913 

300 

San  Isidro  Central  .... 

Cabancalan,  Negros  Occidental 

1917 

250 

Carmen  Central 

Calatagan,  Batangas 

1914 

200 

Palma  Central 

Hog,  Negros  Occidental 

1916 

200 

San  Antonio  Central    .    .    . 

La  Carlota,  Negros  Occidental 

1913 

150 

Dinalupihan  Factory  .    .    . 

Dinalupihan,  Bataan 

1913 

125 

Talisay  Central 

Talisay,  Negros  Occidental 

1913 

125 

Canlaon  Factory      .... 

Canlaon,  Negros  Occidental 

1913 

125 

Muntinlupa  Factoiy    .    .    . 

Muntinlupa,  Rizal 

1912 

100 

Saint  Luis  Oriental  Factory 

Manaoag,  Pangasinan 

1912 

90 

Small  factories   using   open 

train  evaporators  and  vac- 

uum pans : 

Pampanga  Sugar  Factory    . 

Floridablanca,  Pampanga 

1916 

120 

Bernia  Factory 

Dinalupihan,  Bataan 

1918 

90 

Kennedy  Factory     .... 

Isabela,  Negros  Occidental 

1918 

90 

De  la  Vina  Factory     .    .    . 

Vallehermoso,  Negros  Oriental 

1918 

90 

Tubigan  Sugar  Factory  .    . 

Tubigan,  Bohol 

1917 

60 

Factories  under  construction 

or  projects  definitely  planned 

for  immediate  development: 

Pampanga  Sugar  Central    . 

Floridablanca,  Pampanga 

1500 

Bais  Sugar  Central  .... 

Bais,  Negros  Oriental 

1000 

La  Carlota  Sugar  Central    . 

La  Carlota,  Negros  Occidental 

1000 

Isabela  Sugar  Central      .    . 

Isabela,  Negros  Occidental 

600 

A  careful  study  of  the  Formosan  sugar  fields  suggests  that 
they  cannot  produce  more  than  three  fifths  of  the  sugar  de- 
manded by  the  Japanese  consumers.  In  Japan  the  consump- 
tion of  sugar  was  twelve  pounds  per  capita.  This  has  increased 
more  rapidly  than  the  population  of  that  country, ^  on  account 

1  Y.  Takekoshi's  "  The  Japanese  in  Formosa,"  p.  242. 


Millions 

of  pesos 

350i— 


826 
860 


200 

m 

150 

125 

100 

75 


Centavos 
per  kilos 

16 


PHILIPPINE  SUGAR  EXPORTS 


Other  (CJiina- Japan) 

I  U.S. 


1907      1908     1909     1910      1911     1912     1913      1914     1915     1916      1917     1918 
Prices 


1907     1908     1909     1910     1911      1912      1913     1914     1915      1916     1917     1918 
CHART  XIX.    PHILIPPINE  SUGAR  EXPORTS 

Customs  Statistics 


146 


ECONOMIC  CONDITIONS 


PER  CAPITA 

CONSUMPTION  IN 

SELECTED  COUNTRIES 

POUNDS  PER  CAPITA 
20            40            60           80 

gg^lPl 

^^^U 

_ 

United  Kingdom 

United  States 

German  Empire 

Fi-ance 

Austria-Hungary 

Russian  Empire '. 

India 

^^^" 

"J^" 
~^^ 

™ 

^^^" 

^^^" 

j™"" 

^ 

1 

of  many  influences  tending  to  an  improved  standard  of  living. 
A  similar  result  should  appear  in  China  in  the  near  future  for 
the  same  reason.  If  the  Chinese  should  use  as  much  sugar 
per  capita  as  is  used  by  the  United  States,  the  Chinese  markets 
would  absorb  practically  the  whole  of  the  present  sugar  pro- 
duction of  the  world.^  In  estimating  markets,  however,  we 
have  to  remember  the  possible  development  of  beet-sugar 
interests  in  Korea  and  Manchuria,  and  the  expansion  of  beet 

culture  already 
well  organized 
in  southern  Aus- 
tralia. Sugar 
entering  any  of 
these  countries 
must  be  prepared 
to  compete  with 
the  local  output. 
The  United 
States  is  to-day 
the  most  valu- 
able potential  buyer  of  sugar  that  the  Islands  have,  and  it  is 
hardly  possible  that  the  full  development  of  the  cane  fields 
of  Hawaii,  Cuba,  Porto  Rico,  and  the  Philippine  Islands  will 
meet  the  demands  of  the  consumers  in  that  country. 

Moreover,  the  United  States  will  continue  to  be  affected  by 
the  sugar  shortage  in  Europe.  So  many  beet  fields  and  sugar 
mills  have  been  destroyed  in  France,  Belgium,  and  Poland 
that  it  will  take  many  years  to  revive  the  industry;  mean- 
while Europe  must  draw  on  the  tropics  for  part  of  its  supply. 
This  will  take  sugar  from  Cuba  and  Java,  and  increase  the 
demand  for  Philippine  centrifugal  sugar  in  the  United  States. 
New  sugar  centrals  will  doubtless  be  erected  in  the  Islands 
both  with  and  without  government  assistance.^ 

1  Lecture  by  Walter  E.  Gonder,  Bureau  of  Science,  Manila,  P.  I. 

2  The  government  of  the  Philippines  is  empowered  to  purchase  a  certain 
amount  of  interest-bearing,  first-mortgage  bonds  of  corporations  organized 
for  erecting  and  operating  sugar  centrals. 


CHART  XX.    CONSUMPTION  OF  SUGAK  FEK  CAPITA 
IN  1903 

Finch  and'Baker 


SUGAR  AS  AN  EXPORT  CROP  147 

Some  of  these  centrals  will  be  built  on  land  newly  brought 
under  sugar  cultivation,  but  much  sugar  cane  from  old  fields 
will  also  be  taken  to  them.  Hence,  as  the  export  of  centrif- 
ugal sugar  increases,  somewhat  of  a  decrease  in  the  export 
of  raw  sugar  may  be  expected. 

In  the  next  few  years,  unless  the  Islands  lose  the  United 
States  market,  the  total  amount  and  value  of  Philippine 
sugar  exports  will  undoubtedly  increase  substantially. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  Give  a  brief  history  of  the  world's  cane-sugar  industry. 

2.  Explain  the  effect  of  the  beet-sugar  industry  on  the  decline 
of  the  cane-sugar  industry.  3.  What  two  circumstances  resulted 
in  placing  the  production  of  beet  sugar  on  a  competitive  basis  with 
cane  sugar  ?  4.  How  have  these  two  methods  been  applied  to  the 
cane-sugar  industry  ? 

5.  Under  what  circumstances  was  the  export  sugar  industry  of 
the  Philippines  originated  ?  6.  What  gave  the  second  impetus  to 
the  growing  of  sugar  here  ?  7.  Why  did  it  decline  after  1897  ? 
8.  What  circumstances  gave  it  renewed  vigor?  9.  Erom  what 
year  does  its  present  prosperity  date?  Explain.  10.  Why  may 
Hawaii  be  taken  as  a  model  for  the  Philippines  in  sugar  produc- 
tion ?  11.  Why  does  the  sugar  industry  of  Formosa  interest  us  ? 
of  Java?   of  Cuba? 

12.  Explain  why  modern  sugar  plantations  with  centrals  are 
being  developed  by  corporations  instead  of  by  individuals.  13.  You 
are  the  owner  of  ten  hectares  of  sugar  land,  and  have  an  iron 
crusher  and  open  kettles  of  your  own.  The  land  about  you  is  well 
developed  in  sugar  cane.  The  holdings  are  small,  and  there  are  no 
chances  of  consolidating  them.  Yours  is  the  best  sugar-making 
plant  in  the  district,  but  you  realize  that  you  could  make  more 
money  if  you  could  have  your  cane  handled  by  a  modern  central. 
Explain  in  detail  two  arrangements  under  which  a  central  might 
be  erected  to  handle  your  cane  and  that  of  your  neighbors. 

14.  You  are  considering  the  advisability  of  investing  in  sugar- 
cane lands.    Give  your  ideas  on  the  subject. 


148  ECONOMIC  CONDITIONS 


Suggestions  for  the  Study*  of  Local  Conditions 

1.  Commercial  forms  of  cane  sugar.  2.  Other  sugars  observed. 
3.  The  importance  of  sugar  cane.  4.  Export  or  import  of 
sugar.    5.   Sugar  lands  that  might  be  developed. 

6.  Alcohol  and  alcoholic  beverages. 

7.  Vinegar. 

Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  The  world  producers  of  cane  sugar ;  of  beet  sugar.  The  im- 
porters and  consumers  of  sugar.  Illustrated  with  map  and  charts. 
(Finch  and  Baker ;  Miller.) 

2.  A  comparison  of  the  processes  in  the  production  of  musco- 
vado and  centrifugal  sugar.  3.  Processes  in  the  manufacture  of 
beet  sugar  as  compared  with  those  in  the  production  of  sugar  from 
cane.  4.  The  modern  sugar  central.  5.  The  equipment  of  a  modern 
sugar  hacienda.  6.  Refining  sugar.  (Miller;  Toothaker;  Bishop 
and  Keller.) 

7.  From  the  latest  "  Statistics  on  Principal  Crops  of  the  Philip- 
pine Islands  "  prepare  a  chart  representing  the  amount  of  sugar 
produced  in  the  Philippines.  Divide  it  into  sections  representing 
the  production  of  the  chief  sugar-producing  provinces.  Compare 
these.  8.  Using  these  data  and  referring  to  Miller's  "  Commercial 
Geography  "  and  Miller  and  Policy's  "  Intermediate  Geography," 
prepare  a  map  of  the  Philippines  showing  the  sugar-producing 
regions,  and  locate  on  it  the  existing  sugar  centrals.  Explain  the 
soil  and  climatic  conditions  which  make  each  important  region 
favorable  for  growing  sugar. 

9.  Grades  of  Philippine  muscovado  sugar.  10.  Their  sources 
and  qualities. 

11.  Secure  the  necessary  data  from  the  latest  annual  report  of 
the  Collector  of  Customs,  and  bring  Charts  XVI,  XVII,  XIX  down 
to  the  present.  Comment  on  these  new  figures.  The  two  markets 
for  Philippine  sugar. 

12.  From  the  lessons  of  the  World  War  explain  how  the  Philip- 
pine sugar  industry  depends  on  shipping.  The  necessity  for  capi- 
tal in  the  sugar  industry  to  enable  the  producers  to  manufacture, 


SUGAR  AS  AN  EXPORT  CROP  .      149 

market,  and  at  the  same  time  replant.  How  the  necessary  capital 
for  all  these  things  may  best  be  obtained. 

13.  The    world's    sources    of    sugar,    commercial    and    local. 

14.  Make    and    explain    a    chart    of    the    uses    of    sugar    cane. 

15.  Philippine  palm  sugar.  16.  The  uses  of  the  sugar  palm. 
17.  Possibilities  of  commercial  sugar  production  from  the  nipa 
palm.  (Miller.) 

18.  The  world's  sources  of  alcohol.  19.  Industrial  uses  of  alco- 
hol. 20.  Alcoholic  beverages,  distilled  and  fermented.  21.  The 
chief  kinds.    22.  The  wine  grape  industry  of  the  temperate  zones. 

23.  The  production  and  consumption  of  alcohol  in  the  Philip- 
pines.   24.  Government  regulation. 

25.  The  distribution  of  the  nipa  palm  in  the  Philippines. 
26.  The  nipa  swamps  of  Pampanga,  Bulacan,  and  the  distillery 
industry  there.  27.  The  rectifying  industry  in  Manila.  28.  The 
production  of  alcohol  from  the  coconut  palm  in  Laguna,  Albay,  etc. 

29.  How  alcohol  is  distilled. 

30.  Philippine  fermented  beverages,  such  as  tuba  and  basi. 

31.  Industrial  alcohol.    Government  control.    Uses. 


Selections  on  the  Theory  of  Economics  to  be  applied 
TO  the  Material  in  the  Chapter 

1.  The  restriction  of  international  trade.  (Bullock,  pages 
240-254.) 

2.  Why  does  Philippine  sugar  sell  in  the  United  States  at  a 
higher  price  than  in  other  countries  ? 

3.  The  duty  on  96°  sugar  imported  into  the  United  States  from 
Java  is  1.256  cents  a  pound.  In  1918  how  much  did  the  Philip- 
pines make  because  of  the  fact  that  its  sugar  did  not  pay  this 
duty?    Who  paid  this' bill?    Why? 


CHAPTER  YIII 


TOBACCO  AS  AN  EXPOET  CROP 


Markets  for  Philippine  Tobacco 

The  present  markets  for  Philippine  tobacco  are  three  in 
number.  There  is  a  large  domestic  consumption  of  locally 
grown  leaf  and  of  cigarettes  made  in  Manila.  There  is  also, 
normally,  a  considerable  export  of  cheap  leaf  to  Europe,  espe- 
cially to  Spain  and  France,  the  source  of  much  of  which  is 

the  Visayas.    Since  the 


Other  foreign  countries. 
Domestic 


CHART  XXI.    CONSUMPTION  OF  PHILIPPINE 
CIGARS  IN  MILLIONS 


Internal  Revenue  Statistics,  1917 


enactment  of  the  Payne 
Bill  a  large  market  for 
good  Philippine  cigars 
has  been  opened  in 
the  United  States.  The 
amount  of  tobacco  con- 
sumed in  the  manufac- 
ture, though  relatively 
small,  is  of  high  grade 
and  value ;  it  comes 
principally  from  the 
Cagayan  Valley.  Chart  XXI  indicates  that  the  cigar  indus- 
try, which  involves  much  capital  and  labor,  is  essentially  an 
export  industry.  Three  fourths  of  the  product  is  exported ; 
one  half  of  the  product  goes  to  the  United  States.  In  1910, 
immediately  after  the  Payne  tariff  ^ent  into  effect,  there 
was  a  large  export  to  the  United  States  of  Philippine 
cigars,  many  of  which  were  of  inferior  grade.  This  tended 
to  give  Philippine  cigars  a  bad  name  in  the  United  States, 
and  in  1911  exports  and  prices  fell  sharply ;  exports  con- 
tinued to  decrease  steadily,  and  by  the  end  of  1914  reached 

150 


TOBACCO  AS  AN  EXPORT  CROP 


151 


for  that  year  the  total  of  fewer  than  60,000,000  cigars.  As  a 
result  of  investigations  and  the  recommendations  made  to  the 
governor-general  by  the  Collector  of  Internal  Revenue,  the 
Legislature,  in  February,  1916,  passed  Act  Number  2613, 
providing  for  improvements  in  growing  and  curing  tobacco. 
It  places  the  control  of  the  classification  of  tobacco  for  export 
in  the  hands  of  the  Collector  of  Internal  Revenue,  by  a  system 


PHILIPPINE  ISLANDS 
Cigar  exports  in  millions 


860.000,000 


300,000 
275,000 
250,000 
225,000 
200,000 
17^,000 
150,000 
125,000 
100,000 
75,000 
50,000 
25,000 
0 


CHART  XXII 


of  inspection ;  it  assesses  inspection  fees  to  pay  the  expenses 
of  enforcement,  and  conducts  a  propaganda  of  advertising 
and  publicity  for  the  purpose  of  increasing  the  tobacco  trade 
between  the  Philippines  and  the  United  States.  The  law 
provides,  also,  with  certain  limitations,  for  the  protection  of 
exporters  against  loss  on  account  of  tobacco  products  that 
become  damaged  en  route  from  Manila  to  the  United  States. 
It  is  intended  that  this  protection,  together  with  advertising 
and  publicity,  shall  make  the  Manila  cigar  business  attrac- 
tive to  American  dealers,  and  also  protect  the  good  name  of 
Manila  cigars  by  keeping  damaged  cigars  from  the  consumer. 


152  ECONOMIC  CONDITIONS 

In  1917,  as  a  practical  result  of  this  provision  of  law,  bills 
amounting  to  P9,093.18  were  paid  from  the  Tobacco  Inspec- 
tion Fund.  Both  the  Manila  factory  owner  and  the  importer 
in  the  United  States  were  protected  against  loss ;  damaged 
Manila  cigars  were  kept  out  of  the  American  market  until 
they  could  be  reconditioned ;  and  the  confidence  and  good  will 
of  the  American  dealers  were  maintained.  The  results  may 
be  seen  on  Chart  XXII,  in  the  exports  for  1917-1918  and 
preceding  years. 

The  domestic  consumption  of  Philippine  tobacco,  cigars,  and 
cigarettes,  and  the  exports  of  the  inferior  leaf  to  Europe  and 
of  cigars  to  China,  need  no  particular  discussion.  The  Phil- 
ippine tobacco  problem  is  to  produce  a  sufficient  quantity  of 
higher-grade  leaf  to  meet  the  increasing  demand  for  Philippine 
cigars  in  the  United  States,  and  to  increase  the  number  of  cigar 
makers  in  Maaila. 

It  is  true  that  in  1914  there  began  an  important  export  of 
leaf  tobacco  to  the  United  States.  The  details  can  be  deter- 
mined from  the  following  figures  of  exports  : 

LEAF  TOBACCO  EXPORTED  FROM  THE  PHILIPPINES  IN  KILOS 

Total  Exports    To  the  United  States 

1915 11,186,000  39,000 

1916 17,986,000  633,000 

1917 7,864,000  3,283,000 

1918  .......  25,720,000  2,957,000 

This  exportation  was,  however,  the  result  of  conditions  due 
to  the  war ;  a  great  demand  was  made  on  the  United  States 
for  tobacco  to  supply  not  only  the  armies  in  Europe,  but  the 
populace  as  well ;  its  own  crop  was  short,  and  hence  it  drew 
on  the  world's  crop.  With  the  end  of  the  war  the  demand  for 
Philippine  leaf  tobacco  in  the  United  States  ceased,  and  in 
1919  the  exportation  was  trifling.  Moreover,  as  soon  as  space 
for  cargoes  became  available,  the  pre-war  export  of  leaf  tobacco 
to  Spain  and  France  was  renewed. 


TOBACCO  AS  AK  EXPORT  CROP  153 

For  the  future,  therefore,  we  may  expect  three  important 
markets  for  Philippine  tobacco :  (1)  the  large  domestic  mar- 
ket for  cigars  and  cigarettes ;  (2)  a  remunerative  market  for 
cigars  in  the  United  States,  a  market  demanding  the  best  class 
of  tobacco  that  the  Philippines  can  produce,  and  amounting  to 
about  half  the  value  of  the  total  exportation  of  tobacco ;  (3)  a 
large  market  in  Europe,  especially  Spain  and  France,  for  low- 
grade  leaf  tobacco.  In  addition,  the  minor  markets  for  cigars 
and  cigarettes  in  China  and  other  countries  of  Asia  will  con- 
tinue, as  well  as  those  in  Europe. 

History  of  Philippine  Tobacco 

Tobacco  was  introduced  into  the  Philippines  from  Mexico 
at  an  early  date ;  in  1759  it  was  already  being  grown  on  the 
island  of  Cebu.  It  received  its  first  impetus,  however,  from 
the  monopoly  of  tobacco  established  in  1782.  From  the  begin- 
ning of  its  use  in  commercial  quantities  tobacco  has  been 
particularly  subject  to  government  monopoly  and  regulation 
for  revenue.  To-day  France,  Italy,  Japan,  and  Turkey  have 
government  monopolies  which  regulate  its  growing,  manu- 
facture, and  sale.  In  other  countries,  as  the  United  States, 
tobacco  is  subject  to  high  internal  revenue  taxes.  The  chief 
purpose  of  the  monopoly  of  tobacco  in  the  Philippines  ^  was  to 
get  revenue.  Previously  the  colonial  government  had  not  been 
able  to  raise  enough  money  by  taxation  to  meet  its  expenses. 
Systematic  opposition  to  all  extensive  agricultural  enterprises 
arising  from  private  initiative  had  developed,  and  agricultural 
and  industrial  progress  had  been  slow.  Moreover,  the  high 
profits  of   the  trade   centering  at  Acapulco,   Mexico,   drew 

1  Most  of  the  information  on  the  monopoly  of  tobacco  presented  in  this 
chapter  is  taken  from  a  report  made  to  the  Director  of  Education  on  this 
subject  by  Mr.  David  W.  Lucas,  of  the  Philippine  School  of  Commerce. 
This  information  was  obtained  from  Blair  and  Robertson,  Bulletin  No.  58 
of  the  Bureau  of  Labor,  Washington,  D.  C,  and  from  the  report  of  United 
States  Consul  Webb,  of  Manila,  in  "  House  Miscellaneous  Documents," 
1889-1890. 


154  ECONOMIC  CONDITIONS 

attention  away  from  the  surer  but  smaller  income  from  agri- 
culture. But  since  the  ship  from  Acapulco  came  but  once  a 
year,  the  total  profits  from  this  trade  were  much  less  than  the 
profits  from  agriculture  and  manufacture  would  have  been, 
had  the  energies  of  the  wealthy  been  directed  to  them.  There- 
fore the  wealth  of  the  country  remained  so  small  that  it  was 
impossible  to  raise  much  money  by  taxation,  and  Mexico 
sent  funds  annually  to  help  to  run  the  government  of  the 
Philippines. 

In  1782  Governor  Basco  y  Vargas,  by  authority  of  a  royal 
order,  established  the  monopoly  of  tobacco.  It  was  managed 
directly  by  the  government  and  limited  the  cultivation  of 
tobacco  to  certain  districts,  at  first  Gapan  in  Nueva  Ecija 
Province,  some  municipalities  in  Bulacan  and  Cagayan,  and 
the  island  of  Marinduque ;  later  the  area  which  might  be 
cultivated  was  increased.  In  the  most  fertile  sections  nothing 
but  tobacco  could  be  grown.  The  government  determined  the 
.amount  which  any  man  might  cultivate,  and  bought  the  whole 
crop  at  a  fixed  price,  selling  it  again  at  a  good  profit. 

As  a  revenue  measure,  the  monopoly  was  highly  successful. 
Not  only  did  the  subsidies  from  Mexico  become  unnecessary, 
but  money  was  actually  sent  back  to  Spain  as  a  balance  for 
sums  previously  sent  over  by  Mexico.  One  writer  said  that 
this  monopoly  could  become  a  greater  source  of  revenue  than 
all  the  others  of  the  colony.  By  1882,  when  the  monopoly 
was  abolished,  its  gross  annual  revenues  were  about  four 
million  pesos. 

The  monopoly  was  abohshed  on  account  of  the  evils  con- 
nected with  it.  From  the  first,  graft  existed;  some  tobacco 
escaped  the  officers.  The  hill  tribes  in  their  bamboo  fortresses 
raised  tobacco  and  smuggled  it  down  to  the  lowlanders. 
Agents  of  the  government  bought  the  tobacco  from  the 
planter,  turned  it  over  to  the  government  as  a  higher  grade, 
and  pocketed  the  difference.  But  these  were  lesser  evils.  The 
greatest  wrong  was  in  buying  the  tobacco  at  too  low  a  price 
and  paying  for  it  in  promises.    Seven  years  after  the  abolition 


TOBACCO  AS  AN  EXPORT  CROP 


155 


of  the  monopoly  the  price  paid  the  planter  had  doubled,  which 
showed  that  the  grower  had  been  paying  an  unjust  proportion 
of  the  government  revenues.  The  effect  of  the  monopoly  was 
to  make  him  pay  half  of  his  gross  income  as  a  tax.  At  first 
the  grower  was  paid  for  his  product  at  once,  but  afterwards 
scrip  was  issued,  payable  at  the  option  of  the  government. 


1874       1876 


Tons 
140 


/ 

\ 

11 

\ 

V 

n\ 

/ 

A 

/ 

/ 

r 

\ 

/ 

1 

\ 

/^ 

A 

/ 

^ 

l\ 

H 

y 

f 

-4 

x-=.. 

.verage 

by  fives 

/ 

\ 

— - 

n 

J- 

\ 

1 

/\ 

i 

CHART  XXIJl.    TOTAL  PHILIPPINE  TOBACCO  EXPORT,  1873-1895. 
QUANTITY  IN  THOUSANDS  OF  TONS 

Census  Statistics 


For  a  while  these  promises  were  redeemed  promptly;  later, 
however,  payment  was  deferred  until  the  value  had  decreased 
by  a  third.  Many  times  the  planter,  needing  his  money  at 
once,  sold  the  scrip  to  speculators  for  as  little  as  one  tenth  of 
its  face  value,  thereby  getting  just  one  twentieth  as  much  as 
he  did  seven  years  after  the  abolition  of  the  monopoly. 

Although  the  chief  aim  of  the  tobacco  monopoly  was  to 
secure  revenue,  it  also  resulted  in  the  production  of  a  higher 
grade  of  tobacco.   This  was  accomplished  by  close  supervision. 


156  ECONOMIC  CONDITIONS 

Each  province  was  divided  into  districts  in  charge  of  a  head 
officer,  under  whom  were  the  gobernadorcillos  and  tenientes. 
The  total  amount  of  tobacco  to  be  raised  was  determined  in 
Manila,  as  well  as  the  kind,  the  color,  and  the  grade.  The 
governor  of  each  province  received  orders  from  Manila  and 
apportioned  to  each  district  its  share  of  tobacco  to  be  grown ; 
then  each  municipality  and  barrio  was  allotted  its  share.  The 
inspector  rode  over  his  district  and  destroyed  any  tobacco  that 
was  not  up  to  the  specifications.  In  this  manner  a  more  care- 
fully cultivated  and  cured  crop  resulted  than  has  since  been 
marketed. 

Factors  which  reduce  Quality 

During  the  life  of  the  monopoly  of  tobacco  the  industry  had 
been  principally  established  in  the  Cagayan  Valley.  When 
the  tobacco  growers  were  freed  from  restraint,  there  was  a 
great  increase  in  the  amount  of  tobacco  raised  throughout  the 
Islands ;  most  of  it  was  consumed  locally ;  some  of  it  made 
up  the  increased  exports  noted  on  Chart  XXIII.  However, 
the  Cagayan  Valley  has  remained  the  chief  tobacco  region  in 
the  Philippines  on  account  of  its  favorable  soil  and  climate. 

The  grade  of  tobacco  now  produced  in  this  valley  is  very 
low  in  comparison  with  the  quality  which  could  be  raised. 
One  of  the  chief  causes  of  this  has  been  the  lack  of  supervision 
over  the  small  growers,  who  produce  the  bulk  of  the  tobacco, 
and  who  are  ignorant  of  the  proper  methods  of  culture  and 
curing.  There  are  not  many  large  plantations  in  the  Cagayan 
Valley ;  it  is  estimated  that  nine  tenths  of  the  tobacco  grown 
there  is  raised  on  more  than  twenty  thousand  small  planta- 
tions, averaging  an  acre  each.^  The  problem  is  to  instruct  or 
supervise  these  small  growers,  so  that  the  naturally  excellent 
leaf  will  be  turned  into  good  tobacco.  Nature  now  grows  a 
good  tobacco  there,  but  man,  begrudging  his  small  share  of 
effort,  injures  it  before  it  reaches  the  channels  of  trade. 

1  John  S.  Hord,  in  the  Agricultural  Review,  Manila,  Vol.  Ill,  No.  4,  p.  222. 


Curing  under  a  House 


Drying  in  the  Sun 
REDUCING  THE  GRADE  OF  PHILIPPINE  TOBACCO 


158 


ECONOMIC  CONDITIONS 


Most  of  the  tobacco  raised  by  the  small  growers  reaches  the 
factory  agents  or  large  dealers  through  buyers.  Some  of  these 
men  buy  all  classes  of  tobacco  regardless  of  its  quality ;  in 
certain  localities  the  fixed  rate  paid  for  all  leaf  during  the 
monopoly  still  persists.  Just  as  in  the  abaca  trade,  the  pro- 
ducers, not  receiving  a  correspondingly  high  price  for  better 
grades  of  tobacco,  have  no  incentive  to  produce  other  than 
the  low  quality.  There  is  no  need  of  their  expending  effort 
to  produce  a  high  grade  when  with  less  labor  they  can  make 


liiliiiiliiiiliiiii 

80 
70 
60 
50 
40 
30 
20 
10 
0 

s> 

^ 

\ 

y 

\ 

^ 

\ 

/ 

V 

\ 

--\ 

J 

^w/*' 

■^ 

— ^ 

\^ 

S- 

^  ^ 

■^  ^ 

V 

CHART  XXIV.    PHILIPPINE  LEAF  TOBACCO ;  EXPORT  PRICE  PER  KILO 
Census  and  Customs  Statistics 


as  much  money  from  a  low  grade.  Even  when  the  growers 
sell  by  quality,  the  buyers  classify  the  leaf  as  low  as  possible, 
reclassifying  it  higher  when  they  sell  it. 

The  pernicious  system  of  advances  which  applies  to  all 
Philippine  industries  is  particularly  in  evidence  in  the  Cagayan 
Valley.  The  ignorant  planters  are  at  the  mercy  of  the  small 
buyers,  who  lend  them  money  on  growing  crops  at  exorbitant 
rates  of  interest,  compelling  them  to  sell  their  product  at  an 
exceedingly  low  price. 

Hence  it  is  that  the  ignorance  of  the  small  farmers  in  the 
Cagayan  Valley  has  resulted,  first,  in  the  production  of  a 
tobacco  of  much  lower  grade  than  should  be  grown  in  that 
region,  and,  secondly,  in  the  farmers'  being  imposed  on  by 
dealers  and  kept  in  a  state  of  poverty  with  no  incentive  to 
improve  either  their  product  or  their  lot  in  life. 


TOBACCO  AS  AN  EXPORT  CROP 


159 


The  poor  methods  which  result  in  low-grade  tobacco  begin 
with  the  seed  beds ;  ^  these  are  seldom  well  situated,  and  are 
neither  properly  planted  nor  properly  cultivated.  The  fields 
are  poorly  tilled,  and  the  farmer  usually  delays  transplanting 
until  the  last  minute.  The  cultivation  is  carelessly  done.  An 
immense  amount  of  leaf  is  lost  by  worms.  This  negligence  in 
cultivation  alone  probably  reduces  the  tobacco  crop  of  the 
Cagayan  Valley  by  one  half.   Only  about  one  third  of  the  crop 


1909   1910    1911   1912    1913    1914   1915    1916   1917   1918 

^0 

• 

y 

V 

10 

/ 

^ 

'-X. 

'^--^ 

/ 

30 

/ 

/ 

f 

-^'" 

;: 

y 

/ 

^^ 

^ 

20 
10 

/ 

United  States 

All  Co 

an  tries 

0 

1 

CHART  XXV.  PHILIPPINE  CIGAR  EXPORT;   PRICE  PER  THOUSAND 

Customs  Statistics 

is  harvested  at  the  proper  time ;  the  other  two  thirds  of  it  is 
gathered  when  too  green  or  too  ripe.  The  process  of  curing 
tobacco  in  this  region  has  been  without  doubt  the  worst  that 
ever  existed  in  any  tobacco-producing  country  in  the  world.^ 


Plans  to  effect  Improvement  in  Quality 

The  excellent  quality  of  Cagayan  leaf  is  therefore  not  the 
result  of  careful  cultivation  and  curing,  but  persists  in  spite 
of  the  slack  methods  used  in  producing  it.   The  great  market 

1  For  details  of  planting,  etc.,  see  Miller's  "Commercial  Geography." 

2  From  an  unpublished  report  by  Boltos  Brewer. 


160  ECONOMIC  CONDITIONS 

for  Philippine  tobacco  is  that  for  cigars  in  the  United  States ; 
this  market  demands  a  high-grade  leaf.  To  bring  about  the 
production  of  such  a  leaf,  however,  is  a  complicated  matter ; 
for  it  involves  some  change  in  the  system  of  selling  on  the 
part  of  small  dealers,  so  that  they  may  have  .an  incentive  to 
produce  a  higher  grade  of  tobacco.  Even  under  the  strict  rules 
of  the  monopoly  it  was  impossible  to  counteract  entirely  the 
effect  of  the  indolence  and  carelessness  of  the  growers.  They 
would  not  strive  for  superior  excellence  in  cultivation,  nor 
could  they  be  made  to  understand  the  importance  of  attention 
to  the  details  in  curing.^  Moreover,  the  monopoly  was  a  failure 
on  account  of  its  abuses,  and  furnishes  an  example  of  what 
may  result  from  government  control  of  large  productive  enter- 
prises. Hence  any  plan  for  improvement  in  the  quality  of 
Cagayan  tobacco,  if  based  on  government  control,  must  be 
considered  a  more  or  less  dangerous  one.  It  has  been  pro- 
posed to  limit  the  amount  of  land  cultivated  and  the  number 
of  plants  grown  by  each  farmer,  and  to  supervise  the  various 
steps  in  cultivating,  harvesting,  and  curing  the  tobacco  by  a 
system  of  government  experts,  who  shall  have  authority  to 
destroy  tobacco  which  is  not  up  to  the  standard.  If  carefully 
carried  out,  this  plan  might  be  a  success,  but  its  dangers 
are  many. 

Of  the  two  possible  remedies,  government  regulation  and 
education,  it  is  probable  that  the  latter  will  bring  about  results 
more  slowly,  but  that  the  results  will  be  more  extensive  and 
more  permanent.  Such  results  will  also  be  obtained  with  less 
friction  and  with  less  danger  of  abuse. 

For  several  years  the  efforts  of  the  government  to  improve 
the  quality  of  tobacco  in  the  Cagayan  Valley  have  been  in 
the  way  of  instruction  and  example ;  in  view  of  the  difficulty 
of  the  situation  some  success  has  been  attained.  Experts 
travel  through  the  tobacco  region,  study  the  conditions,  give 
advice,  and  use  their  influence  to  introduce  better  methods. 

1  Bulletin  No.  5S,  Bureau  of  Labor,  Washington,  D.C. 


TOBACCO  AS  AN  EXPORT  CROP       161 

Seed  cleaners  are  stationed  in  numerous  localities,  so  that  the 
farmers  are  able  to  obtain  better  seed,  which  means  a  superior 
product.  Experiment  stations  are  also  included  in  this  plan. 
Even  schools  have  taken  up  the  subject;  oral  instruction  is 
given  in  the  classroom,  and  school  plots  are  cultivated  under 
the  direction  of  the  teachers. 

Act  Number  2613,  an  Act  to  improve  the  methods  of  pro- 
duction and  the  quality  of  tobacco  in  the  Philippines  and  to 
develop  the  export  trade  therein,  is  administered  by  the  Bureau 
of  Internal  Revenue  and  by  the  Bureau  of  Agriculture. 

Tobacco  is  placed  under  the  jurisdiction  of  the  Bureau  of 
Agriculture  from  the  time  it  is  planted  to  the  time  it  is 
harvested.  The  Act  provides  that  the  Bureau  of  Agriculture 
through  its  agents  and  inspectors  shall  purchase  seed,  clean 
it,  and  distribute  it  gratuitously  among  tobacco  planters ;  that 
it  shall  be  unlawful  for  any  tobacco  planter  to  cure  leaf 
tobacco  in  any  other  manner  than  in  a  building  or  curing 
shed  constructed  in  accordance  with  the  specifications  of  the 
Bureau  of  Agriculture;  that  planters  may  be  classified  as 
first-class  and  second-class  planters ;  and  that  the  Director  of 
Agriculture  may  grant  diplomas  to  planters  or  producers  for 
excellence  in  the  production  of  tobacco. 

The  Collector  of  Internal  Revenue  has  the  power  to  estab- 
lish general  and  local  rules  respecting,  the  classification,  mark- 
ing, and  packing  of  tobacco  for  domestic  sale  or  for  exportation 
to  the  United  States.  In  general,  the  Bureau  of  Internal 
Revenue  has  charge  of  all  tobacco  after  it  is  harvested,  that 
is,  while  it  is  being  cured  and  fermented,  and  until  it  is 
exported  from  the  Islands,  either  in  the  form  of  cigars  or  in 
bales  to  the  United  States.  The  government  inspection  of 
cigars  for  the  United  States  has  already  been  explained,  and 
the  results  have  been  noted.  The  Bureau  of  Internal  Revenue 
inspects  and  classifies  leaf  tobacco  also,  (1)  as  to  its  origin 
(from  Isabela,  Cagayan,  or  other  provinces),  (2)  as  to  length 
of  leaf,  (3)  as  to  soundness,  (4)  as  to  use  (that  is,  coloring 
and  texture),  (5)  as  to  the  standard  for  export  (that  is,  four 


162  ECONOMIC  CONDITIONS 

classes  for  superior  tobacco  from  the  Cagayan  Valley  and 
three  classes  from  other  provinces). 

This  Act  and  its  administration  have  tended  to  stabilize 
the  tobacco  industry  in  the  Philippines,  and  to  increase  the 
quality  of  the  leaf  tobacco  and  of  cigars  exported  to  the 
United  States. 


SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  The  reasons  for  forming  the  monopoly  of  tobacco.  2.  Its 
rules  and  regulations  and  their  effect.  3.  Its  abuses.  4.  The  effect 
of  the  abolition  of  the  monopoly.  5.  On  what  circumstance  does 
the  prosperity  of  the  Philippine  tobacco  industry  now  depend? 

6.  Why  the  government  controls  the  quality  of  tobacco  leaf  and 
of  cigars  for  export  to  the  United  States,  but  not  for  other  foreign 
markets,  nor  for  the  local  markets.  7.  The  three  markets  for 
Philippine  tobacco  and  its  products.  8.  The  two  forms  in  which 
tobacco  is  chiefly  exported.  9.  The  form  in  which  it  is  chiefly 
consumed  locally. 

10.  Why  the  Isabela  leaf  is  better  than  that  grown  in  Union 
and  Cebu.  11.  The  methods  of  growing  and  curing  tobacco  in  the 
Cagayan  Valley.  12.  How  these  methods  may  be  changed,  and 
the  quality  of  the  tobacco  improved.  13.  The  larger  plantations 
and  the  small  growers  of  tobacco  in  the  Cagayan.  14.  How  the 
output  of  the  small  farms  is  marketed.  15.  The  problem  of  the 
quality  of  the  Isabela  leaf  and  the  small  producer.  16.  How  it  is 
being  met. 

Suggestions  for  the  Study  of  Local  Conditions 

In  tobacco  regions 

1.  A  detailed  report  on  the  correct  methods  of  tobacco  culture 
and  curing.  2.  What  the  government  is  doing  to  increase  the 
quality  of  tobacco  (Act  2613).  3.  Methods  and  procedures  in 
grading  Philippine  tobacco. 


TOBACCO  AS  AN  EXPOKT  CROP  163 

In  cigar-making  centers 

1.  Methods  and  procedures  in  grading  Philippine  cigars  for 
export  and  in  controlling  the  quality  of  the  product  (Act  2613). 
2.  Cigar  workers.  3.  How  cigars  are  made.  4.  Grades  and  shapes. 

Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  The  production  and  use  of  the  world's  tobacco  crop.  Illus- 
trated with  maps  and  charts.  (Miller  ;  Finch  and  Baker.)  2.  The 
proper  cultivation  and  curing  of  tobacco.  3.  The  world's  commer- 
cial forms  of  tobacco.  4.  Grades  of  tobacco.  5.  Kinds  of  tobacco 
with  respect  to  (a)  source,  (b)  use.  (Miller.) 

6.  From  the  latest  ^^  Statistics  on  Principal  Crops  of  the  Philip- 
pine Islands  "  prepare  a  chart  representing  the  amount  of  tobacco 
produced  in  the  Philippines.  7.  Divide  the  chart  into  sections  rep- 
resenting the  production  of  the  chief  tobacco-producing  provinces. 
8.  Compare  these.  9.  Using  these  data,  and  referring  to  Miller's 
"  Commercial  Geography  "  and  Miller  and  Policy's  "  Intermediate 
Geography,"  prepare  a  map  of  the  Philippines  showing  the  regions 
producing  tobacco  for  export  and  for  local  consumption. 

10.  Secure  the  necessary  data  from  the  latest  annual  report  of 
the  Collector  of  Customs,  and  bring  Charts  XXI,  XXII,  XXIV, 
XXV,  down  to  the  present.   11.  Comment  on  these  new  figures. 

12.  Chart  the  total  value  of  tobacco  exports  from  the  Philippines 
since  1899,  and*  the  amount  exported  to  the  United  States. 

13.  From  the  latest  annual  report  of  the  Collector  of  Customs, 
make  a  chart  showing  the  export  of  leaf  and  stripped  tobacco  from 
the  Philippines,  and  the  principal  countries  to  which  it  is  sent. 
14.  Using  data  from  the  latest  annual  report  of  the  Collector  of 
Internal  Revenue,  make  a  chart  representing  the  annual  production 
of  cigarettes,  the  local  consumption,  and  the  export. 

15.  Narcotics  other  than  tobacco,  such  as  opium,  cocaine,  buyo. 

Selections  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  Chapter 

1.  Monopolies  (Bullock,  pages  167-180).  2.  The  difference 
between  fiscal,  financial,  and  natural  monopolies. 


.    CHAPTER  IX 
MINOR  AND  POSSIBLE  EXPORT  CROPS 

Abaca,  copra,  sugar,  and  tobacco  compose  about  nine  tenths 
of  the  exports  of  the  Philippine  Islands.  In  this  chapter  we 
shall  consider  certain  minor  agricultural  exports  and  certain 
other  crops  which,  though  grown  but  little  in  the  Islands, 
could  be  produced  in  much  larger  quantities. 

Agave  Fibers 

Henequen  ^  fiber  has  been  known  and  used  in  Mexico  for 
centuries.  In  1783  its  value  for  cordage  was  recognized;  in 
1830  a  small  quantity  was  shipped  to  Europe.  Large  pro- 
duction and  export  of  that  fiber,  however,  came  about  only 
when  machinery  had  been  invented  to  strip  the  fiber  from 
the  leaves  at  small  cost.  The  machine  used  for  this  purpose 
was  the  result  of  a  prize  offered  by  the  Mexican  govern- 
ment. The  low  cost  of  obtaining  the  fiber  then  made  it 
possible  for  henequen  to  compete  successfully  with  other 
rope  fibers,  and  caused  large  plantations  to  be  started  in 
Mexico.  Various  tropical  and  subtropical  countries  later  es- 
tablished plantations  with  several  species  of  agave,  so  that 
the  amount  of  agave  fiber  now  produced  is  very  large.  Im- 
proved machines  and  increased  production  have  brought  down 
the  price,  so  that  it  is  now  profitable  to  grow  agave  only  on 
large  plantations  where  systematic  cultivation,  stripping,  and 

1  The  identity  of  the  plants  from  which  agave  fibers  are  obtained  has  now 
been  determined  as  follows: 

sisal  =  Agave  sisalana  Perrinne ; 
henequen  =  Agave  fourcroydes  Lemaire ; 
maguey  =  Agave  cantata  Rox. 
164 


MINOR  AND  POSSIBLE  EXPORT  CROPS         165 

marketing  make  it  possible  to  eliminate  the  waste.  The  day- 
has  passed  when  the  small  planter  and  stripper  of  agave 
fibers  can  normally  make  money. 

Agave  cantala^  the  species  from  which  maguey  fiber  is  ob- 
tained, was  probably  introduced  into  the  Philippine  Islands 
from  Mexico;  it  is  now  found  growing  throughout  the 
Archipelago.  The  possibility  of  raising  it  on  poor  soils,  such 
as  those  found  in  Ilocos  Norte,  Cebu,  Bohol,  and  other  regions, 
caused  large  numbers  of  these  plants  to  be  set  out  several 
years  ago  when  the  price  of  agave  fibers  was  comparatively 
high.  In  the  meantime,  however,  the  large  sisal  plantations  in 
German  East  Africa  and  other  countries  came  into  bearing, 
and  the  price  of  these  fibers  fell.  The  scattered  plantings  of 
maguey  in  the  Philippines  do  not  warrant  the  use  of  strip- 
ping machines,  since  a  continuous  supply  of  leaves  cannot 
be  obtained,  and  transportation  from  scattered  localities  is 
expensive.  In  Java  it  has  been  proved  that  successful  plan- 
tations must  be  well  equipped  with  machinery,  and  must  con- 
sist of  about  three  hundred  hectares  with  cantata  as  the  chief 
crop,  or  a  hundred  and  twenty-five  hectares  with  cantata  as 
the  secondary  crop.^  Since  no  plantmgs  of  maguey  in  the 
Philippines  approach  this  size,  it  is  evident  that  the  com- 
mercial production  of  maguey  here  is  not  usually  profitable. 
Indeed,  in  most  parts  of  the  Islands,  in  normal  years,  either 
the  maguey  leaves  are  allowed  to  go  to  waste  or  the  plants 
are  grubbed  up.  The  usual  annual  export,  valued  at  about 
PI, 000,000,  comes  chiefly  from  Ilocos  Norte  and  Cebu,  and 
is  obtained  by  retting.  The  workers  usually  own  the  leaves ; 
before  the  World  War  they  got  from  the  sale  of  the  fiber 
the  equivalent  of  only  a  fair  wage. 

The  war  prices  of  1914  stimulated  the  stripping  of  maguey, 
and  the  export  increased  from  about  7,000,000  kilos  in  1915 
to  more  than  14,000,000  kilos  in  1917.  This  increased  pro- 
duction was  mostly  the  result  of  utilizmg  fields  normally 

1  Bulletin  of  the  Imperial  Institute,  London,  Vol.  X,  No.  2,  p.  301. 


166  ECONOMIC  CONDITIONS 

neglected.  The  value  increased  from  about  PI, 000,000  to 
about  F4,700,000.  This  excellent  price  revived  interest  in 
maguey.  More  plants  were  set  out,  and  the  question  of 
machinery  was  again  agitated. 

In  1918  the  amount  of  maguey  exported  from  the  Philip- 
pmes  was  more  than  11,000,000  kilos,  valued  at  more  than 
?3,700,000.  Most  of  the  export  of  1917  went  to  the  United 
States.  In  1918  the  United  States  took  very  little  maguey 
from  us ;  nearly  all  of  it  went  to  Great  Britain.  In  1917- 
1918  the  average  export  price  of  maguey  was  about  thirty- 
four  centavos  per  kilo.  With  the  end  of  the  war  and  the 
dissolution  of  the  Mexican  Sisal  Monopoly  prices  fell.  For 
the  first  six  months  of  1919  only  about  2,846,000  kilos 
of  maguey  were  exported,  at  an  average  price  of  about 
twenty-five  centavos  per  kilo.  Many  of  the  plantings  of 
maguey  were  again  abandoned,  and  the  strippers  turned  to 
other  industries. 

Unless  the  production  is  regulated,  therefore,  the  industry 
will  not  be  able  to  compete  with  those  of  other  countries, 
now  that  conditions  in  the  world  at  large  are  becoming 
normal.  It  is  probable  that  maguey  will  continue  to  be  a 
minor  export  of  the  Philippines,  and  that  most  of  the  product 
will  be  sent  to  the  United  States,  as  it  was  during  the  war. 

In  parts  of  Cebu  and  I  locos  the  plantations  have  been  put 
on  such  a  basis  that  machines  have  been  successfully  operated 
in  much  the  same  way  as  sugar  centrals.  There  is  room  for 
such  machines  in  certain  localities  where  there  are  extensive 
plantings  of  maguey  and  good  facilities  for  transportation  to 
central  points,  at  wliich  stripping  machinery  can  be  established. 

A  small  amount  of  sisal  fiber  also  is  exported,  the  product 
of  plants  imported  from  the  Hawaiian  Islands. 

Maguey  and  sisal  fibers  are  included  in  the  fibers  graded 
by  the  Bureau  of  Agriculture.  The  grades  are  now  placed 
under  three  general  types :  maguey,  or  retted  Agave  cantata ; 
cantala,  or  Agave  caritala,  cleaned  by  machinery  or  knives; 
and  sisal. 


MINOR  AND  POSSIBLE  EXPORT  CROPS        167 

Kapok 

Kapok  trees  grow  throughout  the  Philippines.  If  the  fiber 
from  these  trees  were  gathered,  the  aggregate  amount  would 
be  considerable,  but  with  the  exception  of  Oriental  Negros 
few  of  the  provinces  produce  the  fiber  in  commercial  quan- 
tities. Java  is  the  chief  source  of  the  kapok  used  in  Europe 
and  the  United  States. ^   Much  of  the  Java  fiber  is  obtained 


1900  1901   1902  1903   1904   1905   1906   1907 


1909  1910   1911  1912 


Tons 
8000 

6000 

1      1 

KAPOK 

Exports  from  Jav^ 

IN  TONS 

(Phll.Agr.Rev.V.No.8) 

L 

/ 

\ 

^ 

^^^ 

4000 

-^ 

— 

/ 

Cents 
Gold 
22 

20 

■          ' 

2000 

^ 

KAPOK 

'/ 

\, 

^ 

16 

0 

Maximum  Price 

1     PER  POUND 
IN 

United  States 
JN  cents  gold 

^ 

X 

s 



,^-^" 

^ 

12 

10 
8 
6 
4 
2 
0 

CHART  XXVI 


from  trees  planted  along  the  roads,  but  regular  plantations 
also  exist.  The  amount  of  kapok  exported  from  the  Philip- 
pines is  almost  negligible  in  comparison  with  that  from 
Java.  In  1910  Java  exported  more  than  eight  thousand 
tons.  In  1910  the  Philippines  exported  thirty  tons,  and  in 
1913  a  hundred  and  thirty-four  tons.  If  the  pods  from  the 
kapok  trees  now  existing  in  the  Philippines  were  gathered, 
the  present  export  could  be  increased  many  times  without 

1  The  growth  and  final  establishment  of  this  industry  can  be  seen  on 
Chart  XXVI. 


168  ECONOMIC  CONDITIONS 

decreasing  the  amount  used  locally.  Since  the  World  War 
the  export  has  decreased.  It  may  revive  again  when  freights 
become  normal. 


Fruits 

The  position  of  fruits  in  the  diet  of  the  Filipinos  has 
already  been  explained.  The  unsatisfied  local  demand  for 
fruits  would  of  course  preclude  export  to  foreign  countries. 
There  is  only  one  considerable  area  in  the  Philippines  which 
at  the  present  time  is  economically  dependent  on  fruit  culture, 
and  this  is  the  orange  district  of  Tanauan,  in  Batangas  Prov- 
ince. But  there  are  several  fruits  in  the  Philippines  which 
could,  either  in  their  present  variety  or  in  an  improved  type, 
be  produced  in  large  quantities  for  both  local  use  and  export. 
With  respect  to  foreign  fruit  markets  two  methods  of  dis- 
posing of  the  product  may  be  considered,  the  export  of 
canned  fruit  and  the  export  of  fresh  fruit. 

A  good  example  of  the  former  method  is  the  pineapple- 
canning  industry  of  the  Hawaiian  Islands,  where  a  very  large 
amount  of  capital  is  invested  in  canneries.  The  plantations 
on  which  the  fruit  is  produced  are  extensive,  and  a  large  num- 
ber of  laborers  are  employed.  Exports  of  fresh  fruit  require 
a  market  fairly  close  at  hand.  Some  fruits,  such  as  bananas, 
can  be  carried  long  distances  if  carefully  picked  and  carefully 
packed.  Others  must  be  shipped  in  cold  storage.  An  excel- 
lent example  of  successful  fruit  raising  and  export  on  a  large 
scale  is  the  orange  industry  of  Southern  California.  In  the 
latter  part  of  the  nineteenth  century  the  attention  of  Ameri- 
can horticulturists  was  attracted  to  the  industry  of  citrous 
fruits,  and  superior  varieties  were  introduced  from  other 
orange-producing  countries.  Most  of  the  fruit  grown  in  Cali- 
fornia is  transported  in  special  refrigerator  cars ;  if  it  is  to  be 
carried  by  water,  it  is  placed  in  the  cold-storage  compart- 
ments of  steamers.  California  oranges  are  imported  into  the 
Philippmes  and  even  into  Australia. 


MINOR  AND  POSSIBLE  EXPORT  CROPS         169 

Of  the  fruits  grown  in  the  PhiHppines  the  pineapple  would 
be  the  best  suited  for  large  canning  operations.  The  variety 
grown  is  not  so  good  as  some  that  are  now  being  introduced. 
In  many  regions  of  the  Archipelago  the  conditions  of  soil  and 
climate  are  well  adapted  to  the  pineapple,  and  plantations  have 
already  been  started.  The  mango  is  also  a  fruit  which  lends 
itself  well  to  canning  and  preserving.^  Jelly  for  local  con- 
sumption is  now  made  from  the  Philippine  guava.  It  is  prob- 
able also  that  several  other  Philippine  fruits  will  be  found 
suitable  for  canning  and  preserving  in  commercial  quantities. 

A  large  market  for  Philippine  bananas,  mangos,  chicos,  lan- 
sones,  and  citrous  fruits  could  undoubtedly  be  developed  in 
China  and  Japan,  and  for  citrous  fruits  in  Australia.  A  dis- 
cussion of  Philippine  export  markets  for  fresh  fruit  is  more 
or  less  academic  at  the  present  time,  on  account  of  the  lack  of 
fruit  to  supply  even  local  demand ;  but  the  subject  is  men- 
tioned because  of  its  possibilities  if  the  production  of  fruit  in 
the  Islands  is  ever  placed  on  a  scientific  and  commercial  basis. 
Through  the  introduction  of  varieties  from  abroad  and  selec- 
tion from  the  seedlings  at  home,  and  through  improved 
methods  of  cultivation,  the  standard  excellence  of  the  citrous 
fruits  (orange,  pomelo,  mandarin,  and  lemon)  will  be  raised. 
Citrous  orchards  cultivated  on  scientific  principles  and  fruit 
handled  properly  could  hardly  fail  to  yield  large  returns  on  the 
investment;  they  would  supply  the  local  market  with  good 
fruit  at  lower  prices  than  at  present,  and  the  business  would 
ultimately  develop  into  a  considerable  export  trade. 

The  banana  industries  of  Jamaica  and  Costa  Rica,  the  two 
most  important  countries  in  this  trade,  are  examples  of  results 
that  can  be  obtained  from  systematic  fruit  culture.  Jamaica 
now  exports  to  the  American  and  English  markets  about 
12,000,000  bunches  of  bananas  a  year,  and  Costa  Rica  about 
10,000,000.  These  are  purchased  from  the  growers  on  the  spot 
at  from  thirty  to  sixty  centavos  a  bunch ;  they  are  conveyed 

1  For  a  discussion  of  methods  in  canning,  see  Miller's  "  Commercial  Geog- 
raphy." 


170  ECONOMIC  CONDITIONS 

by  rail  to  the  ports  from  which  large  steamers,  specially 
constructed  for  this  trade,  transport  them  to  the  markets. 
Thus  a  bunch  of  bananas  hanging  in  a  New  England  store 
may  have  been  taken  from  the  plant  in  Costa  Rica  fifteen  days 
before.  The  success  of  this  industry  has  depended  on  the  care- 
ful cultivation  of  the  best  varieties,  and  on  systematic  trans- 
portation and  marketing.!  Total  shipments  of  bananas  to  the 
United  States  in  1911  were  44,660,000  bunches  containing  from 
eighty  to  two  hundred  bananas  each,  valued  at  P28,600,000. 
These  were  sold  in  the  United  States  at  about  the  price  de- 
manded for  the  better  grade  of  bananas  in  Philippine  cities. 
The  number  of  vessels  engaged  in  this  trade  is  greater  than 
the  whole  fleet  of  inter-island  steamers  in  the  Philippines. 

Rubber 

Rubber  originated  in  Central  and  South  America  and  in 
Africa.  From  time  to  time  it  had  received  the  attention  of 
experimenters  and  merchants,  but  it  was  not  until  1820  that 
anything  practical  was  done  with  it.  The  modern  rubber  in- 
dustry dates  from  the  experiments  of  Goodyear,  who  found 
that  a  product  impervious  to  water  and  not  affected  by  ex- 
tremes of  temperature  was  obtained  by  combining  rubber 
with  sulphur  at  high  temperatures.  Later  Mackintosh  dis- 
covered the  art  of  waterproofing  cloth  by  means  of  dissolving 
rubber  in  naphtha.  Since  that  time  the  demand  for  rubber  has 
increased  by  leaps  and  bounds,  as  new  uses  have  been  found 
for  it.  The  supply,  however,  has  not  kept  pace  with  the 
demand.  For  many  years  rubber  was  obtained  in  a  wild  state 
in  the  Amazon  Valley  and  in  Africa ;  but  the  increased  uses 
for  it  resulted  in  attempts  to  secure  a  more  reliable  source  of 
supply,  and  experiments  were  made  in  cultivating  plants 
which,  in  a  wild  state,  yield  rubber.  Plantations  were  estab- 
lished in  Mexico,  Central  America,  the  Malay  Peninsula, 
Ceylon,  and  other  countries.    The  high  profits  which  these 

1  National  Geographic  Magazine,  Vol.  XIII,  No.  7. 


MINOR  AND  POSSIBLE  EXPORT  CROPS         171 

plantations  realized  caused  great  interest  in  the  cultivation  of 
rubber,  accompanied  by  extensive  speculation  in  the  stock  of 
the  plantation^.  The  shares  were  run  far  above  their  actual 
value,  and  the  market  broke.  Since  then  the  rubber-plantation 
industry  has  become  more  stable.  At  the  prices  before  the 
World  War  the  profits  from  cultivated  rubber  were  large, 
though  not  nearly  so  large  as  those  promised  to  speculators 
during  the  period  of  speculation. 

The  Philippines  have  also  been  interested  in  cultivated  rub- 
ber, but  only  with  the  opening  of  Mindanao  and  Palawan 
have  large  areas  suitable  to  the  growing  of  rubber  been  avail- 
able. It  is  true  that  throughout  the  other  islands  there  are 
sheltered  and  suitable  spots,  where  typhoons  are  not  destruc- 
tive, but  the  aggregate  area  of  these  spots  is  small  compared 
with  the  amount  of  land  available  below  the  typhoon  belt 
in  Mindanao,  Sulu,  and  Palawan.  Not  only  are  these  latter 
regions  free  from  winds  which  break  the  rubber  plants,  but 
they  are  not  visited  by  drought  or  a  dry  season,  which  unfit 
central  and  western  Luzon  and  the  western  coasts  of  the 
Visayas.  The  wild  hogs  in  Mindanao,  Sulu,  and  Palawan 
constitute  a  menace  to  the  young  trees,  but  these  can  be 
guarded  against  by  strong  fences.  The  existence  of  plantations 
there  proves  that  the  trees  grow  well.  The  chief  difficulty 
now  is  to  obtain  sufficient  labor,  and  this  is  deterring  many 
from  entering  the  industry.  Although  the  Philippines  are  a 
producer  of  plantation  rubber,^  it  is  improbable  that  they  will 
soon  be  an  important  factor,  since  the  most  favorable  localities 
lack  a  supply  of  labor. 

The  situation  has  been  complicated  recently  by  the  possibil- 
ities of  synthetic  rubber.  One  of  the  leading  chemists  of  the 
world  has  stated  that  artificial  rubber  will  soon  be  produced 
in  commercial  quantities  below  the  present  price  of  either 

1  See  ''  Rubber-Growing  Industry  of  the  Philippines  "  and  "  Cost  of  Pro- 
ductiop  and  Products,"  by  Dean  C.  Worcester,  Secretary  of  the  Interior,  Gov- 
ernment Printing  Office,  Washington,  D.  C.  In  1918  the  Islands  exported 
34,000  kilos  of  rubber,  valued  at  P  75,000. 


172  ECONOMIC  CONDITIONS 

wild  or  cultivated  rubber.  If  this  is  accomplished,  it  may  be 
that  tropical  rubber  growing  will  come  to  the  same  end  as  the 
indigo  industry,  which  was  destroyed  by  the  production  of 
synthetic  indigo  in  Germany. 

Silk 

The  raising  of  silkworms  ^  would  seem  a  possible  industry 
in  the  Philippines  because  the  climate  is  suitable  and  food  for 
the  worms  is  easily  produced.  The  mulberry  on  which  the 
Bombyx  mori  feeds  was  introduced  into  the  Philippines  in 
1593.  From  time  to  time  interest  has  been  taken  in  silk  rais- 
ing, and  various  persons  and  societies  have  endeavored  to 
establish  it  in  the  Islands.  The  failure  of  these  efforts  has 
been  due  to  lack  of  financial  backing.  Then,  too,  the  agri- 
culturists never  lent  themselves  williugly  to  the  growing  of 
the  silkworms  on  account  of  the  great  care  demanded.  From 
'the  year  1870  no  attempts  were  made  to  iutroduce  the  silk- 
worm until  1905,  when  the  Bureau  of  Science  at  Manila  took 
up  the  matter.  There  are  now  in  the  Philippines  two  kinds  of 
worms :  (1)  Bombyx  mori,  feeding  on  the  leaves  of  cultivated 
mulberry,  and  producing  a  cocoon  which  is  reeled  ;  (2)  Attacus 
ricinii,  the  Eri  silkworm,  which  lives  on  the  leaves  of  the  cas- 
tor plant  found  growing  wild  throughout  the  Philippiues, 
and  which  produces  unreelable  cocoons  from  which  spun  silk 
is  made.  Experiments  made  with  these  two  worms  warrant  the 
statement  that  silk  raising  can  be  carried  on  in  the  Philippines 
under  conditions  as  favorable  as  those  which  prevail  in  the 
best  silk-producing  countries  of  the  world,  with  the  added 
advantage  that  no  disease  has  appeared  among  the  insects  here 
or  on  the  trees  used  for  feeding  them.  In  countries  about  the 
Philippines  diseases  among  the  silkworms  cause  heavy  losses. 
By  law  it  is  now  forbidden  to  import  silkworms,  eggs,  or 
cocoons  into  the  Islands.  The  spread  of  the  silk  industry  must 
take  place  under  the  supervision  of  the  authorities,  since 

1  See  "  Manual  of  Philippine  Silk  Culture,"  by  Charles  S.  Banks,  Bureau 
of  Science,  Manila. 


MINOR  AND  POSSIBLE  EXPORT  CROPS         17eS 

inexperience  or  slovenly  methods  may  lead  to  diseases.  In 
several  places  in  the  Philippines  both  the  schools  and  private 
persons  have  become  interested,  and  it  would  seem  that  the 
industry  has  already  been  launched.  Its  growth  must  neces- 
sarily be  slow.  For  many  years  to  come  a  considerable  amount 
of  silk  produced  in  the  Philippines  can  be  used  in  the  local 
production  of  cloths  such  as  jusi  (made  from  raw  silk),  silks, 
and  pongees.  The  United  States  furnishes  a  large  market  for 
both  silk  fiber  and  silk  textiles,  so  that  the  Philippines  already 
have  an  outlet  for  surplus  production.  They  also  have  the 
benefit  of  free  trade,  whereas  the  product  of  other  countries 
is  subject  to  a  high  duty. 

Essential  Oils 

For  many  years  there  has  been  an  export  of  ilang-ilang 
oil  from  the  Philippines.  Up  to  a  few  years  ago  the  Islands 
were  practically  the  only  source  of  this  oil ;  the  high  prices 
received  for  the  flowers  made  their  production  extremely  re- 
munerative. At  the  present  time  such  competition  has  devel- 
oped in  Mauritius  and  Madagascar  that  the  price  for  the  flowers 
has  dropped  from  forty  or  fifty  centavos  to  seven  centavos 
per  kilo.i  It  is  improbable  that  the  growing  of  ilang-ilang 
will  again  be  so  remunerative  as  formerly.  There  are  several 
other  Philippine  plants  which  yield  essential  oils  for  perfumery. 
The  world's  market  is  constantly  demanding  new  perfumes ; 
Michelia  ehampaca  has  been  cultivated  here  with  the  hope  that 
the  high  price  will  make,  its  oil  a  remunerative  minor  export 
of  the  Philippines.^ 

Coffee 

The  coffee  plant  was  introduced  into  the  Philippines  by 
Spanish  missionaries,  late  in  the  eighteenth  century.  By  1858 
considerable  quantities  were  produced,  especially  in  the  high- 
lands of  Batangas,  Laguna,  and  Cavite  provinces.    In  1884 

1  Journal  of  Science^  Vol.  V,  No.  4. 
.  2  For  Philippine  essential  oils,  see  Journal  of  Science,  Manila,  Vols.  IV,  V. 


174  ECONOMIC  CONDITIONS 

the  exportation  of  coffee  exceeded  P 2,000,000  in  value.  In 
1889  the  PhiHppine  industry  was  practically  wiped  out  by  the 
attacks  of  the  fungus  Hemileia  vastatrix.  Although  the  indus- 
try is  now  flourishing  in  some  localities,  such  as  Benguet  and 
Bukidnon,  and  the  production  for  the  Islands  as  a  whole  is 
increasing  slightly,  it  is  improbable  that  coffee  will  soon  be 
exported  in  commercial  quantities.  The  possibility  that  the 
pest  will  again  become  active,  and  the  sure  returns  from  copra, 
sugar,  abaca,  tobacco,  and  rninor  export  crops,  are  against 
coffee.  The  Philippines  consume  about  1,750,000  kilos  of 
coffee  a  year,  of  which  more  than  1,000,000  kilos  are  imported, 
mostly  from  Hawaii  and  Java. 

Starches 

The  production  of  cassava  and  sago  in  the  Philippines  has 
already  been  touched  on  with  respect  to  the  place  of  these 
plants  in  the  diet  of  the  Filipinos.  As  a  source  of  flour,  tapioca, 
and  alcohol,  cassava  is  an  important  crop.  The  export  of  tap- 
ioca from  the  Philippines  is  a  possibility.  Throughout  the 
Visayas,  and  particularly  in  the  Agusan  Valley,  the  sago  palm 
is  found.  In  Borneo  the  starch  from  this  palm  is  formed 
into  pellets  known  as  sago,  and  exported  in  large  quantities. 
Extensive  swamp  lands  suitable  for  sago  palms  exist  in  the 
Visayas  and  Mindanao.  Among  other  plants  which  yield  com- 
mercial starches,  and  which  grow  well  in  the  Philippines,  is 
the  arrowroot. 

Oils 

The  coconut  is  the  principal  oil  seed  produced  in  the  Philip- 
pines. Several  other  oil  seeds  grow  here,  however,  and  are 
worthy  of  more  careful  attention  for  export.  Among  these 
are  (1)  the  peanut,  which  is  produced  throughout  the  Islands 
for  local  consumption  and  for  forage ;  (2)  sesame,  which  is 
grown  here  and  there  in  small  quantities  for  local  use,  and 
which  is,  to  some  extent,  already  being  exported ;   (3)  the 


MINOR  AKD  POSSIBLE  EXPORT  CROPS         175 

castor-oil  bean,  inferior  varieties  of  which  are  found  in  all 
parts  of  the  Islands,  the  oil  having  become  very  important  as 
a  lubricant  for  aeroplanes ;  and  (4)  the  candlenut,  which  is 
now  gathered  in  commercial  quantities  in  a  few  districts  only, 
but  which  is  being  extensively  planted  by  the  Bureau  of 
Forestry  in  reforested  areas.  In  1918  about  185,000  kilos  of 
oil,  valued  at  Fl30,000,  were  exported. 

Established  New  Crops 

This  enumeration  does  not  include  all  present  or  possible 
export  crops  of  the  Philippines.  Other  export  crops  may  result 
from  the  effort  of  large  enterprises  backed  by  either  local  or 
foreign  capital.  The  present  methods  used  in  the  production 
of  the  four  chief  export  crops,  and  of  the  more  important  of 
the  minor  exports,  do  not  warrant  the  introduction  of  new 
plants  among  Filipino  cultivators.  In  the  older  and  well- 
settled  portions  of  the  Islands  more  can  be  done  by  organizing 
the  established  industries  on  a  firmer  basis,  and  by  improving 
the  crops  already  grown,  than  by  introducing  new  crops. 

Nevertheless,  diversification  is  a  desirable  condition  in  agri- 
culture. It  is  a  kind  of  insurance  which  eliminates  the  chance 
of  a  general  disaster  from  the  failure  of  any  one  important 
crop.  It  provides  new  crops,  more  or  less  tried  out,  to 
take  the  place  of  those  no  longer  profitable.  It  is  a  phase  of 
national  agriculture  that  should  be  developed  by  government 
support  and  cooperation. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  The  value  of  diversification  in  crops  to  the  country ;  the 
locality ;  the  individual.  2.  Its  limits.  3.  History  of  the  coffee 
industry  in  the  Philippines  as  an  example  of  what  may  occur  to 
other  commercial  crops  if  pests  are  not  controlled. 

4.  You  have  one  hectare  of  fertile  land,  which  you  are  urged 
to  plant  with  maguey.   WiU  you  do  so  ?  5.  Suppose  the  land  is 


176  ECONOMIC  CONDITIONS 

sandy  and  not  valuable  for  another  crop.  6.  If  you  had  a  hundred 
hectares  of  such  land,  under  what  circumstances  would  you  plant 
it  with  maguey  ?  7.  What  controls  the  price  of  maguey  fiber  in 
the  Philippines  ?  8.  Show  how  the  price  of  abaca  fiber  is  deter- 
mined by  much  more  direct  causes.  9.  Explain  why  the  price 
of  sisal  fiber  affects  the  price  of  Manila  hemp.  10.  Why  do  the 
lower  grades  of  Manila  hemp  increase  in  price  when  there  is  a 
large  crop  of  grain  in  North  America?  11.  From  the  history 
of  the  agave  industry  draw  a  comparison  as  to  what  would 
probably  happen  if  successful  stripping  machinery  were  intro- 
duced into  the  abaca  industry. 

12.  Uses  of  kapok,  and  the  possibilities  for  its  increased 
production  for  export. 

13.  Philippine  fruits  in  relation  to  the  possibility  of  growing 
them  for  export  («)  in  a  fresh  state ;  (b)  preserved. 

14.  The  banana  industry  of  the  West  Indies  and  Central 
America.  15.  Could  a  similar  industry  be  developed  in  the 
Philippines  ?  16.  Bananas  versus  abaca  in  the  Philippines. 

Suggestions  for  the  Study  of  Local  Conditions  in 
THE  Maguey  Districts 

1.  The  government  grading  of  maguey.  2.  Maguey  retting. 
3.  How  a  maguey  central  is  managed. 

4.  Report  on  the  feasibility  of  establishing  a  maguey  central 
in  a  selected  locality. 

5.  Possibility  for  maguey  and  kapok  commercially.  6.  The 
fiber  plants  of  the  locality  (illustrated  by  specimens). 

7.  Local  fruits  in  relation  to  local  consumption  and  domestic 
trade.   Possibilities.    8.  New  and  possible  agricultui-al  crops. 

Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  The  relation  between  sugar,  starches,  and  alcohol.  2.  The 
chief  sources  of  commercial  starches.  3.  Uses  of  starch.  4.  Philip- 
pine starches. 

5.  Make  and  explain  a  chart  of  the  uses  of  the  Buri  palm. 

6.  Clothing  fibers  of  the  world.  7.  Where  produced  and  used, 
illustrated  with  maps.    (All  commercial  geographies.) 


MINOR  AND  POSSIBLE  EXPORT  CROPS         177 

8.  The  processes  in  the  manufacture  of  cloth.  9.  Uses  of  cloth. 
10.  International  trade  in  cloth.  11.  Cloth  imports  into  the 
Philippines.  12.  The  proportion  of  cotton-cloth  imports  to  all 
imports.    (Commercial  geographies  and  customs  reports.) 

13.  Cotton.  (Miller ;  Finch  and  Baker ;  Toothaker  ;  Bishop  and 
Keller.) 

14.  The  silk  industry  of  the  world.  15.  Its  relation  to  the  mul- 
berry. 16.  The  possibilities  of  silk  production  in  the  Philippines. 

17.  Abaca,  banana,  and  pineapple  fibers,  and  the  cloths  produced 
from  them. 

18.  Hats.  19.  The  fibers  used.  20.  Felt,  braided,  and  platted 
hats.  21.  Localities  of  manufacture.  22.  Trade  in  hats.  23.'  Phil- 
ippine hats. 

24.  The  production  and  uses  of  coir  fiber.  25.  Possibilities  of 
producing  coir  fiber  in  the  Philippines.  26.  The  manufacture  of 
coir  mats  in  the  Philippines. 

27.  Philippine  mats  and  matting. 

28.  Commercial  brush  and  broom  fibers.  29.  Those  grown  and 
used  in  the  Philippines.  30.  Japan  as  a  manufacturer  of  brushes 
and  brooms. 

31.  How  paper  is  manufactured.  32.  Kinds  of  paper.  33.  Paper 
materials.    34.  Possible  Philippine  paper  materials. 

35.  Some  minor  fibers  used  by  the  Filipinos.  36.  Fibers  that 
might  be  introduced  and  grown  commercially  in  the  Philippines. 
37.  Regions  in  which  they  are  now  grown.   38.  Uses.    39.  Trade. 

40.  Dyes  in  their  relation  to  fibers.  41.  Local  dyes.  42.  Mineral 
dyes.    43.  History  of  the  Philippine  indigo  industry. 

44.  The  fruits  of  temperate  and  subtropical  regions  and  the 
trade  in  them.    45.  Import  of  fruits  into  the  Philippines. 

46.  The  production,  consumption,  and  trade  in  the  world's 
chief  crops  for  beverages  (coffee,  tea,  cacao),  with  maps  and  charts. 
47.  The  production,  import,  and  use  in  the  Philippines.  (Miller ; 
Finch  and  Baker ;  and  other  commercial  geographies.) 

48.  The  chief  commercial  spices.  49.  How  and  where  they  are 
produced.  50.  Those  produced,  imported,  and  used  in  the  Phil- 
ippines.   (Miller.) 

51.  The  increasing  uses  of  rubber.  52.  The  rubber-producing 
regions  of  the  world  and  the  trade  in  rubber,  with  maps  and 
diagrams.  (Bishop  and  Keller;  Finch  and  Baker;  and  other 
commercial  geographies.)  53.  Philippine  rubber  regions.   (Miller.) 


CHAPTER  X 
LOCATION  AND  CHARACTER  OF  AGRICULTURE 

The  Soil 

The  rocks  of  the  Philippines  are  chiefly  of  volcanic  origin,^ 
and  much  of  the  soil  has  been  derived  from  their  disintegra- 
tion. In  most  cases  it  is  a  heavy  red  soil,  exceedingly  fertile 
on  account  of  the  minerals  which  it  contains.  It  is  much  like 
the  soils  of  the  Hawaiian  Islands,  which  also  are  of  volcanic 
origin,  and  is  well  adapted  to  the  growth  of  sugar,  abaca, 
rubber,  and  the  like.  Large  areas  of  the  Philippines  are 
covered  with  limestone,  most  of  which  is  derived  from  coral. 
Residual  soils  of  limestone  formation  are  not  very  fertile,  since 
the  soluble  part  has  been  carried  off  by  streams,  and  only  the 
insoluble  clay  remains.  However,  the  transported  limestone 
soils,  such  as  those  found  in  the  valleys  and  along  the  coastal 
plains  near  mountains  covered  with  limestone,  are  exception- 
ally fertile.  For  instance,  in  Cebu  the  hillsides  are  not  very 
fertile,  whereas  some  of  the  best  agricultural  land  in  the 
Islands  is  to  be  found  in  the  coves.  Another  fertile  soil  exist- 
ing in  the  Philippines  is  that  from  the  disintegration  of  the 
sandstone.  Of  the  transported  soils  two  are  exceptionally 
important:  (1)  the  fluvial  soils  found  in  the  valleys,  which 
are  very  rich,  on  account  of  their  chemical  composition  and 
their  finely  divided  and  loose  state ;  (2)  a  heavy,  thick, 
grayish-blue  soil,  found  at  the  base  of  many  mountains  and 
largely  derived  from  rocks  of  volcanic  origin,  one  of  the  best 
soils  for  rice  growing. 

1  For  a  discussion  of  soils  in  the  Philippines,  see  Philippine  Journal  of 
Science^  Vol.  V,  No.  5,  Sect,  A. 

178 


Abaca  and  Coconuts  about  Mayon  Volcano 


Rice  Fields  about  Laguna  de  Bay 
PHILIPPINE  SOILS 


180  ECONOMIC  CONDITIONS 

Climate 

The  average  yearly  rainfall  in  the  Philippines  is  2200  mil- 
limeters (88  inches)  ;  all  regions  have  an  annual  rainfall  of 
at  least  900  millimeters  (36  inches).  However,  some  of  the 
regions  which  have  the  highest  annual  rainfall  receive  it  during 
only  six  months  of  the  year.  In  the  chapter  on  rice  it  has 
been  shown  that  the  long  dry  season  which  occurs  in  western 
and  central  Luzon,  and  on  the  western  coast  of  certain  other 
islands,  is  an  important  factor  in  limiting  the  rice  to  one  crop 
annually ;  whereas  on  the  eastern  coasts  the  continuous  rain- 
fall makes  two  and  even  three  crops  possible.  Not  only  are 
there  fewer  quickly  maturing  crops  in  regions  subject  to  a 
dry  season,  but  without  irrigation  it  is  impossible  in  these 
regions  to  grow  plants  which  take  a  year  or  more  to  mature. 
Abaca,  rubber,  and  such  long-maturing  crops  are  therefore 
confined  to  those  localities  which  have  a  fairly  continuous 
rainfall  throughout  the  year. 

Regions  subject  to  heavy  winds  are  not  favorable  to  the 
growth  of  many  plants.  In  the  Philippines  the  best  regions 
for  abaca  are  those  seldom  or  never  visited  by  typhoons.  Ex- 
cept in  small,  well-protected  valleys  rubber  does  not  thrive 
in  Luzon  and  neighboring  islands,  because  of  the  destruction 
wrought  by  these  violent  storms.  In  the  Batan  Islands,  on 
account  of  the  typhoons  to  which  those  islands  are  subjected, 
certain  roots  have  become  the  chief  crops. 

The  effect  of  temperature  on  agriculture  is  of  great  impor- 
tance, since  for  most  products  there  are  certain  limits  of  tem- 
perature within  which  their  growth  is  confined.  Only  a  few 
agricultural  products,  such  as  corn  and  tobacco,  have  a  wide 
range  of  growth  in  both  temperate  and  tropical  regions.  A  few 
other  products  of  the  temperate  zone  will  grow  in  the  tropics, 
but  do  not  thrive  there.  Thus,  the  white  potato  will  grow 
in  the  Philippines,  but  does  not  do  well.  Variation  in  temper- 
ature due  to  latitude  is  not  great  enough  within  the  Philip- 
pines to  create  zones  of  agriculture.  Mangosteens  are  strictly 
an  equatorial  fruit,  and  even  in  the  Philippines  are  found  only 


LOCAL  CONDITIONS  OF  AGEICULTURE        181 

in  Sulu,  Mindanao,  and  the  southernmost  part  of  the  Visayan 
Islands ;  but  other  products  may  be  grown  in  the  lowlands 
from  Cagayan  to  Sulu.  On  the  other  hand,  variations  in  tem- 
perature due  to  differences  in  altitude  greatly  affect  plant  life 
here.  In  the  lower  levels  are  found  swamp  and  tropical  forests, 
the  coconut,  bamboo,  rice,  sugar,  and  other  lowland  growth.  At 
slightly  higher  elevations  coffee  and  citrous  fruits  thrive  best. 
Above  1000  meters  (3000  feet)  the  tropical  forest  of  the  Phil- 
ippines gives  way  to  pine ;  it  is  in  this  region  that  many  fruits 
and  vegetables  characteristic  of  the  temperate  and  subtropical 
regions  can  be  grown.  Only  a  few  high  peaks  of  the  Islands  are 
covered  with  typically  temperate-zone  growths  such  as  the 
forests  of  scrub  oak. 

Transportation  Facilities 

With  people  who  live  in  so  primitive  a  state  as  the 
Negritos,  or  even  the  Subanuns  and  mountain  peoples,  trans- 
portation facilities  have  little  effect  on  the  location  of  agricul- 
tural activities.  The  same  may  be  said  of  families  and  groups 
among  more  advanced  peoples  who,  through  their  own  efforts, 
obtain  from  agriculture  the  products  necessary  for  their  exist- 
ence. However,  as  soon  as  the  commercial  idea  is  applied 
to  agriculture,  and  crops  are  grown  for  exchange,  transporta- 
tion becomes  an  important  problem.  In  the  Philippines  the 
regions  best  suited  to  the  cultivation  of  export  crops  are  those 
along  the  coasts  of  the  Islands,  or  those  connected  with  the 
coasts  by  water  transportation.  With  the  advent  of  wheeled 
transportation  plains  and  valleys  have  become  important,  since 
roads  and  railroads  are  constructed  there  rather  cheaply. 

In  general,  then,  it  may  be  stated  that  the  location  and  the 

character  of  agricultural  activities  is  influenced  (1)  by  the 

fertility  and  composition  of  the  soil ;  (2)  by  the  amount  and 

distribution  of  the  rainfall ;  (3)  by  the  temperature ;  (4)  by 

the  intensity  of  the  winds ;  (5)  by  the  natural  transportation 

facilities.^ 

iWhen  agriculture  becomes  capitalistic,  that  is,  when  it  is  carried  on 
by  individuals  and  companies  on  a  large  scale  requiring  more  than  the 


182  ECONOMIC  CONDITIONS 

Philippine  Agricultural  Regions 

The  results  of  these  influences  on  agriculture  in  the  Philip- 
pines are  noticeable.  Along  the  coasts  of  nearly  all  the 
Islands  are  found  plains  of  greater  or  less  extent,  most  of 
which  have  a  fairly  uniform  surface,  and  slope  gradually  to- 
ward the  sea.  Coastal  plains  are  nearly  always  fertile,  since 
they  are  covered  with  sedimentary  or  volcanic  deposits.  More- 
over, transportation  is  usually  easy  both  by  land  and  by  water. 
On  the  other  hand,  harbors  bordering  on  coastal  plains  are 
apt  to  be  few  and  poor.  Most  coastal  plains  were  formed  by 
the  elevation  of  land  masses,  but  most  harbors  are  due  to 
erosion  and  the  sinking  of  land  rather  than  to  its  upheaval. 
The  most  important  coastal  plains  in  the  Philippines  are  those 
of  the  Ilocos  provinces,  Zambales,  Mindoro  Island,  Antique 
Province,  and  Negros  Island.  But  practically  all  the  islands 
possess  coastal  plains  of  greater  or  less  size,  and  even  those 
found  on  the  larger  lakes,  such  as  Laguna  de  Bay,  are  of 
importance.  Because  of  their  agricultural  and  transportation 
advantages,  and  because  fishing  can  be  carried  on  along  their 
shores,  the  coastal  plains  of  the  Philippines  are  well  populated 
in  comparison  with  the  interior  regions. 

Another  type  of  Philippine  agricultural  region  of  great 
fertility  is  the  plain  formed  by  the  upheaval  of  the  Islands. 
The  Central  Plain  of  Luzon  (the  granary  of  the  Philippines), 
the  Plain  of  Leyte,  the  Central  Plain  of  Panay,  and  the 
Cotabato  Plain  contain  the  largest  continuous  stretches  of 
agricultural  land  in  the  Philippines.  The  soil  brought  down 
from  the  surrounding  mountains  often  covers  these  plains  to 
a  considerable  depth.    In  the  Central  Plain  of  Luzon,  and  in 

labor  of  the  owner  and  his  family,  two  other  considerations  determine  the 
location  and  character  of  agricultural  activities:  (6)  the  amount  of  labor 
available,  and  (7)  the  number  of  work  animals  and  implements  available,  and 
the  amount  of  machinery  which  exists  or  which  can  be  acquired.  The  lack  of 
sufficient  labor  has  greatly  influenced  agriculture  in  Mindanao  and  other 
sparsely  populated  portions  of  the  Philippines.  The  lack  of  work  animals, 
of  large  agricultural  machinery,  and  of  modern  sugar  mills  has  retarded  the 
growth  of  the  sugar  industry  in  Negros  and  other  sugar  regions. 


^ 


Formosa 


PHTEIPPTNE  ISLANDS 

CHIEF 
AGRICULTURAL  REGIONS  ^^ 


ENS'R.  CO.,H.Y.\\ 


CHART  XXVII.    CHIEF  PHILIPPINE  AGRICULTURAL  REGIONS 


184  ECONOMIC  CONDITIONS 

the  Cotabato  Plain,  rivers  offer  cheap  transportation,  and  road 
and  railroad  building  is  not  difficult.  Hence  it  is  that  these 
plains,  so  far  as  political  conditions  will  permit,  are  among 
the  richest  and  most  densely  populated  regions  in  the  Philip- 
pines. They  are  also  the  regions  which  offer  greatest  oppor- 
tunity for  agricultural  expansion  in  the  future. 

Of  Philippine  valleys  the  Cagayan  and  Agusan  are  the 
most  important,  though  many  other  small  valleys,  such  as 
the  Bicol  and  the  Gandara,  are  very  fertile.  The  population 
of  the  Philippines  has  not  been  dense  enough  to  occupy 
more  than  the  flood  plains  of  these  valleys.  The  great 
grassy  stretches  extending  on  each  side  are  very  fertile, 
but  are  harder  to  bring  into  and  keep  in  cultivation  than 
are  the  flood  plains  which  annually  receive  sediment  from 
overflows.  In  the  Cagayan  Valley  the  floods  deposit  from 
one  to  twenty-five  millimeters  of  sediment  on  the  flood  plain 
every  year.  It  is  largely  on  account  of  the  fertility  thus  added 
that  tobacco  of  such  good  quality  is  continuously  raised  there. 
The  rivers  of  these  large  valleys  offer  facilities  for  transpor- 
tation, but  the  swift  current  which  often  characterizes  them 
lessens  their  value  for  this  purpose.  The  valleys  are  subject 
to  worse  floods  than  are  the  plains,  though  it  is  probable  that 
the  increased  fertility  produced  by  the  deposits  of  silt  more 
than  compensates  for  the  damage  wrought. 

Throughout  the  Philippines  there  are  numerous  small  val- 
leys lying  in  the  mountains  or  opening  out  into  the  coastal 
plains.  These  furnish  some  of  the  richest  land  for  small  farm- 
ing, but  the  difficulty  in  transporting  the  produce  from  them 
is  usually  so  great  that  they  are  but  sparsely  settled.  Many 
of  them  are  not  occupied  at  all. 

Another  type  of  fertile  Philippine  agricultural  region  is 
the  highland,  good  examples  of  which  are  found  in  south- 
western and  southeastern  Luzon.  The  soil  is  usually  derived 
from  disintegrated  volcanic  matter;  its  fertility  and  good 
drainage  make  it  most  suitable  for  such  plants  as  the  abaca 
and  the  coconut.    These  regions  are  sufficiently  elevated  for 


LOCAL  CONDITIONS  OF  AGRICULTURE        185 

the  growth  of  coffee  and  other  highland  crops.  The  great 
drawback  to  these  regions  is  the  difficulty  of  transporting 
their  products  to  the  coasts,  but  this  is  now  being  overcome 
by  the  building  of  railroads.^ 

Of  plateaus  Benguet  and  the  Bukidnon  are  the  most 
important  in  the  Philippines.  Were  it  not  for  the  difficul- 
ties of  transportation,  the  Bukidnon  plateau  would  undoubt- 
edly be  a  very  rich  region.  The  amount  of  arable  land  in 
Benguet  is  limited,  but  the  transportation  system  now  being 
developed  will  bring  it  into  close  connection  with  Manila. 

Plateaus  occupy  a  peculiar  position  in  the  tropics,  since 
temperate-zone  and  subtropical  crops  can  be  grown  on  them. 
Both  these  plateaus,  for  instance,  have  furnished  coffee  to 
the  lowlands  for  many  years ;  Benguet  will  undoubtedly 
supply  the  Manila  market  with  such  temperate-zone  products 
as  berries  and  flowers. 

A  few  of  the  hills  and  low  mountains  of  the  Philippines 
support  a  considerable  population,  such  as  those  of  Cebu  (the 
most  densely  populated  of  the  large  islands  of  the  Philippines), 
where  thousands  of  people  eke  out  an  existence  from  the  shal- 
low limestone  soil.  The  terraces  of  the  mountains  of  northern 
Luzon  have  already  been  described.  In  other  mountain  regions 
agriculture  takes  the  form  of  the  kaingin  system  of  clearings 
in  the  forest,  such  as  those  of  the  Subanuns. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 

Suggestions  based  oit  the  Text 

1.  Tabulate  the  important  agricultural  regions  of  the  Philippines 
according  to  the  following  classification  :  (a)  inland  plains ;  (h) 
great  valleys  ;  (c)  coastal  plains  ;  (d)  small  valleys  ;  (e)  highlands; 
(/)  plateaus  ;  (cf)  mountains. 

1  This  difficulty  of  transportation  retarded  the  development  of  the  high- 
land regions  of  the  Philippines,  and  the  land  remained  unclaimed.  As  the 
result  of  recent  settlement,  land  is  now  owned  in  small  parcels.  Hence 
these  highland  regions  in  the  Philippines  are  usually  very  democratic,  since 
nearly  all  persons  are  landholders,  and  wealth  is  rather  evenly  distributed. 
Many  of  these  regions  bid  fair  to  develop  into  wealthy  communities. 


186  ECONOMIC  CONDITIONS 

2.  Tabulate  the  advantages  and  disadvantages  of  the  regions 
included  in  each  of  these  classifications  as  to  (a)  composition  and 
fertility  of  the  soil,  (b)  amount  and  distribution  of  rainfall  and 
its  effect,  (c)  temperature,  (d)  intensity  of  winds,  (e)  natural 
transportation  facilities. 

3.  Locate  a  certain  region  of  the  Philippines  that  you  think 
might  be  developed  into  an  important  agricultural  region,  and 
bring  in  a  report  covering  its  possibilities. 

Suggestions  for  the  Study  of  Local  Conditions 

1.  Make  a  map  of  the  province  or  locality  showing  (a)  the 
soils,  according  to  their  formation,  and  according  to  the  crops 
grown ;  (b)  the  means  of  transportation,  indicating  the  areas  well 
and  poorly  provided,  and  explaining  the  effect  of  transportation 
facilities  on  the  character  of  the  crops  grown. 

2.  Philippine  soils  in  their  relation  to  crops. 

Suggestions  for  Reports  from  References 

1.  Climate  of  the  Philippines  in  relation  to  the  location  of 
agriculture.  (See  Miller  and  Policy's  "  Intermediate  Geography," 
and  illustrate  the  discussion  with  a  chart  on  which  the  distribu- 
tion of  rainfall  in  Tuguegarao,  Candon,  Calbayog,  and  Surigao 
are  plotted.) 

2.  Philippine  agricultural  regions  that  depend  for  their  pros- 
perity on  natural  means  of  water  transportation.  3.  Explain  how 
the  improvement  in  these  will  increase  the  agricultural  value 
of  the  region.  4.  Philippine  agricultural  regions  that  have  been 
or  are  being  developed  as  the  result  of  the  building  of  roads  and 
railroads,  for  exampl'e,  Nuava  Ecija,  Northern  Camarines,  and 
southern  Tayabas.  5.  Using  data  from  the  census  on  the  culti- 
vated area  by  municipalities,  prepare  a  map  of  the  agricultural 
regions  of  the  Philippines,  and  compare  it  with  Chart  XXVII. 

Selections  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  Chapter 

Nature  as  a  factor  of  production.    (Bullock,  pages  32-35.) 


CHAPTER  XI 
DEVELOPMENT  I:N"  AGRICULTURE 

Advances  made  in  agriculture  by  primitive  peoples  are 
due  to  environment,  necessity,  chance,  and  observation, 
rather  than  to  knowledge.  Even  among  civilized  peoples, 
who  understand  the  use  of  the  plow  and  other  advanced 
agricultural  implements,  who  practice  crop  rotation,  fertiliza- 
tion of  the  soil,  and  selection  of  seed,  development  in 
agriculture  has  also  been  the  result  of  environment,  necessity, 
and  observation,  rather  than  of  science.  For  instance,  people 
of  the  United  States  have  developed  machinery  for  agricul- 
tural purposes  because  their  problem  has  been  to  cultivate 
large  areas  with  little  labor.  On  the  other  hand,  the  people 
of  many  parts  of  Europe  and  of  Asia  obtain  greater  yields 
per  hectare,  since  they  understand  more  thoroughly  the 
principles  of  intensive  cultivation.  Their  problem  has  been 
to  obtain  the  greatest  possible  yield  to  feed  the  large  number 
of  people. 

Calamities 

The  natural  forces  which  bring  about  most  calamities  are 
usually  too  great  for  man  to  control,  but  he  can  so  prepare 
himself  for  them  as  to  recover  quickly  from  their  effects. 
Struggle  with  adverse  conditions  of  nature  has  developed 
in  him  a  vigor  and  resourcefulness  w^hich  forms  a  valuable 
national  asset. 

Floods  and  high  winds  are  the  most  common  causes  of 
calamities  in  the  Philippines.  Heavy  rainfall  at  the  head- 
waters of  river  valleys,  such  as  the  Cagayan,  cause  the 
streams  to  rise,  sometimes  far  above  their  banks.  Typhoons 
occasionally   drive  the    sea   a   considerable   distance  inland, 

187 


188  ECONOMIC  CONDITIONS 

causing  the  water  of  the  rivers  to  overflow  the  land.  The 
damage  done  by  floods  is  usually  the  drowning  of  standing 
crops,  the  destruction  of  agricultural  lands  by  changes  in  the 
river  channels,  injury  to  houses  and  agricultural  implements, 
and  the  drowning  of  animals.  Sea  water  is  destructive  both 
to  crops  and  to  soil.  River  water,  however,  is  usually  bene- 
ficial in  the  end;  the  overflow  of  the  Cagayan  River  yearly 
enriches  the  soil  of  the  flooded  area;  the  amount  of  alluvial 
matter  deposited  by  unusual  floods  often  more  than  com- 
pensates for  their  damage.  The  damage  may  be  prevented  to 
a  certain  extent  by  so  planting  that  the  harvest  comes  before 
or  after  the  floods  usually  occur. 

Typhoons  bring  with  them  high  winds.  In  the  northern 
part  of  Luzon  they  are  of  annual  occurrence,  and  are  pro- 
vided for  in  the  character  of  the  crops.  In  the  central  and 
southern  parts  of  the  Philippines  typhoons  are  unusual,  and 
their  visitations  are  indeed  calamities.  Coconuts  and  abaca  are 
the  crops  to  which  high  winds  are  particularly  injurious,  and 
the  effects  of  one  storm  may  be  felt  for  a  long  period  of  years. 
For  instance,  the  injury  done  by  the  typhoon  of  1908  to  the 
yield  of  copra  in  Romblon  lasted  for  more  than  five  years. 

Eruptions  of  volcanoes  affect  only  a  small  area ;  but  the 
destruction  within  this  area  is  usually  great.  Mayon  and 
Taal  are  the  only  volcanoes  which  have  done  any  considerable 
damage  within  historic  times.  In  1754  Taal  erupted  from 
May  to  December;  a  large  extent  of  cultivated  land  was 
destroyed  by  showers  of  ashes  and  mud,  and  by  immense 
rainfall.  1  In  1911  another  destructive  eruption  of  Taal  oc- 
curred, which  killed  hundreds  of  persons  on  the  western 
side,  covered  the  surrounding  country  with  mud  to  a  depth 
of  from  one  to  three  feet,  and  destroyed  or  damaged  the 
vegetation  over  a  large  area.  The  earthquake  wave  which 
the  eruption  caused  was  also  destructive  round  the  shores  of 
the  lake.2    In  1897  the  flow  of  lava  from  Mayon  Volcano 

1  Census,  1903. 

2  See  ''The  Eruption  of  Taal  Volcano,"  Weather  Bureau,  1911. 


DEVELOPMENT  IN  AGRICULTURE  189 

destroyed  plantations  and  towns  on  its  sides  and  base.^ 
The  rapidity  with  which  volcanic  ejecta  decompose,  however, 
and  the  richness  of  the  soil  thus  formed,  often  compensate 
for  the  damage  wrought  to  agricultural  land  and  to  property 
in  general. 

The  effects  of  calamities  do  not  last  long  in  the  Philip- 
pines ;  for  both  the  soil  and  the  people  show  remarkable  recu- 
perative powers.  Secondary  effects  may,  however,  persist  for 
some  time.  For  example,  the  typhoons  which  swept  Samar 
in  1908  so  reduced  the  crops  that  the  people  were  forced 
to  look  to  some  other  means  of  living  than  agriculture.  The 
large  weaving  industry  of  Basey,  Samar,  is  one  indirect  result 
of  these  typhoons.  The  number  of  mats  woven  on  Romblon 
Island  has  been  much  greater  because  of  the  decrease  in  the 
yield  of  coconuts  caused  by  the  typhoon  of  1908. 

Dry  Seasons,  Droughts,  and  Irrigation 

Droughts  have  not  been  discussed  with  other  calamities, 
since,  unlike  them,  their  effects  can  be  larg^y  overcome.  The 
regular  annual  period  of  drought,  or  dry  season,  which  occurs 
for  almost  six  months  in  central  Luzon  and  the  western  parts 
of  certain  other  islands,  and  for  two  or  three  months  in  parts, 
of  the  Visayas,  has  already  been  discussed  with  respect  to  its 
influence  on  the  number  and  character  of  the  crops,  and  on 
the  seasons  of  agricultural  activity.  Extraordinary  droughts, 
however,  also  occur  in  the  Philippines.  Sometimes  they  affect 
only  a  very  small  area,  but  at  long  intervals  the  entire  Archi- 
pelago is  subject  to  unseasonable  dry  periods.  Probably  the 
most  serious  of  these  occurred  in  eight  months  of  the  season 
of  1911-1912.  In  June,  July,  and  August  there  were  numer- 
ous typhoons,  bringing  copious  rains,  and  planting  conditions 
were  excellent.  In  the  critical  months  for  the  rice  crop,  Octo- 
ber, November,  and  December,  there  was  almost  a  total  lack 

1  See  "  La  Erupc<5n  del  Volcan  May6n,"  by  P.  Jos6  Coronas,  S.  J., 
Manila,  1898. 


190  ECONOMIC  CONDITIONS 

of  rain  throughout  the  Islands  and  then-  vicinity.^  This  caused 
a  large  reduction  in  the  rice  crop.  Corn,  root  crops,  coconuts, 
abaca,  and  almost  all  the  other  crops  were  injured  by  the 
long  period  of  dry  weather. 

If  extraordinary  droughts  happen  at  planting  time,  they 
usually  result  only  in  delay  and  a  late  field  crop.  If  a  field 
crop  has  already  been  planted,  drought  may  cause  its  destruc- 
tion or  a  reduced  yield.  The  yield  of  long-maturing  crops, 
such  as  coconuts  and  abaca,  is  always  affected  by  continued 
dry  weather;  abaca  may  even  be  destroyed  by  drought  of 
long  duration. 

The  effect  of  drought  can  be  reduced  by  conserving  the 
moisture  in  the  ground.  The  method  of  accomplishing  this 
is  called  dry  farming.  It  has  been  highly  developed  in  the 
United  States  on  the  dry  plains  of  the  Northwest.  Certain 
regions  there  have  only  a  small  annual  rainfall,  which  occurs 
during  a  very  short  period.  When  the  rains  are  over,  the 
crops  are  planted.  Then  they  are  frequently  cultivated  shal- 
low, so  that  a  layer  of  dust  forms  over  the  field.  This  dust 
mulch  prevents  the  escape  of  moisture  from  the  ground  by 
evaporation,  and  conserves  it  for  the  use  of  the  plants.  It  is 
probable  that  by  this  system  certain  field  crops,  such  as 
millets  and  corn,  could  be  grown  in  the  Philippines  during 
the  ordinary  period  of  the  dry  season,  and  that  the  yield  of 
long-maturing  crops  could  be  increased.  During  periods  of 
unusual  drought  dust  mulching  is  of  the  utmost  importance 
in  keeping  long-maturing  plants  alive.  During  the  extreme 
drought  of  1911-1912,  for  example,  coconut  groves  which 
were  cultivated  shallow  were  little  affected  in  their  yield, 
but  uncultivated  groves  decreased  one  half  in  the  produc- 
tion of  nuts.  In  Davao  it  is  reported  that  the  abaca  stalks 
on  an  uncultivated  plantation  fell  over  from  lack  of  moisture, 
but  that  on  a  neighboring  plantation  they  were  kept  alive 
by  shallow  cultivation,  which  conserved  the  moisture.    The 

1  See  "The  Extraordinary  Drought  in  the  Philippines,  October,  1911,  to 
May,  1912,"  Weather  Bureau,  Manila. 


DEVELOPMENT  IN  AGRICULTURE  191 

yield  on  the  latter  plantation  was  interrupted  for  only  six 
months ;  on  the  former  plantation  no  stripping  could  be  done 
for  more  than  two  years.  The  cost  of  cultivation  necessary 
to  produce  and  maintain  the  soil  mulch  is  so  little  that  this 
method  is  generally  practicable. 

Soil  mulch  merely  reduces  the  damage  done  by  drought. 
The  effect  of  long  periods  of  dry  weather  can  be  wholly  over- 
come only  through  irrigation.  Even  among  such  primitive 
peoples  as  the  Bontoks  and  the  Ifugaos  we  find  that  the  value 
of  irrigation  is  known,  and  that  the  more  simple  methods  of 
accomplishing  it  are  practiced.  Irrigation  for  the  production 
of  crops  was  in  use  thousands  of  years  before  the  Christian 
Era.  In  all  parts  of  the  world  are  found  remnants  of  irriga- 
tion works,  some  of  them  of  large  size.  Regions  still  exist 
wherein  water  is  carried  to  the  fields  by  human  beings.  Many 
devices,  worked  by  human  or  animal  power  or  by  river  cur- 
rents, are  used  to  raise  water  and  spread  it  over  the  fields. 
Occasionally  the  topography  of  the  land  to  be  irrigated  and 
the  position  of  the  streams  is  such  that  water  can  be  diverted 
from  rivers  by  dams.  Small  areas  can  be  irrigated  by  means 
of  pumps.  In  certain  parts  of  the  world  the  geological  forma- 
tion is  such  that  good  results  are  obtained  from  artesian  wells ; 
these  are  often  used  over  a  considerable  area. 

None  of  these  methods,  however,  supplies  a  sufficient  amount 
of  water  to  be  of  great  value,  and  with  the  exception  of  arte- 
sian wells  all  of  them  depend  more  or  less  directly  on  rainfall. 
Throughout  the  world  reservoirs  and  irrigation  systems  are 
now  being  built  to  insure  a  constant  supply  of  water,  and  to 
bring  into  cultivation  lands  which  otherwise  could  not  be 
used.  Sometimes  these  structures  owe  their  origin  to  private 
capital,  but  their  great  size  and  the  number  of  interests 
involved  often  necessitate  government  ownership. 

In  India  there  are  18,000,000  hectares  of  land  under  irri- 
gation. Of  these  7,200,000  hectares  are  irrigated  by  govern- 
ment works.i    Egypt  has   about    2,500,000   hectares   under 

1  Robert  Buston  Buchley's  "  Irrigation  Works  of  India." 


192  ECONOMIC  CONDITIONS 

irrigation,  an  area  which  supports  a  population  of  5,000,000, 
in  addition  to  the  payment  of  an  immense  interest  on  the 
national  debt.  Cape  Province,  in  South  Africa,  is  wasting 
enough  water  to  supply  more  than  1,000,000  hectares  of 
land.  There  are  also  systems  supplying  water  to  about 
200,000  hectares.^  Australia  supplies  irrigating  systems 
with  water  from  artesian  wells.  The  annual  yield  from  these 
wells  in  the  Murray  River  basin  alone  amounts  to  more  than 
750,000,000  cubic  meters.  These,  with  the  other  water  sup- 
plies of  that  country,  are  under  government  control.^ 

The  Filipinos  have  several  primitive  forms  of  irrigation. 
In  a  few  places  human  treadmills,  such  as  are  found  through- 
out the  East,  are  seen.  Sweeps  are  sometimes  worked  by 
human  power  to  raise  pails  of  water  and  empty  them  into 
irrigartion  ditches.  Carabaos  are  often  used  to  turn  water 
wheels ;  but  these  wheels  are  sometimes  turned  by  the 
force  of  the  current.  Temporary  dams  are  frequently  built 
to  divert  water  from  rivers.  Pumps  are  being  employed  to 
a  small  extent.  In  the  Central  Plain  of  Luzon  artesian  wells 
are  being  used  to  irrigate  small  tracts.^  It  is  estimated  that 
permanent  systems  of  irrigation  in  the  Islands  supply  water 
to  about  50,000  hectares  of  land.  These  systems  usually  con- 
sist of  permanent  dams  for  diverting  rivers,  and  of  ditches  for 
leading  water  to  the  fields.   In  a  few  places  there  are  reservoirs. 

Irrigation  in  the  Philippines  is  of  the  most  importance  to 
rice ;  it  has  already  been  discussed  in  the  chapter  dealing 
with  that  cereal.  The  irrigation  of  sugar  cane  and  other  crops 
will  generally  be  profitable.  In  regions  subject  to  a  dry  season 
irrigation  will  result  in  the  growing  of  more  than  one  crop  of 
rice  or  other  cereal  during  the  year,  and  will  permit  the  intro- 
duction of  long-maturing  crops,  such  as  abaca.    In  all  regions, 

1  Bulletin  of  the  Imperial  Institute,  June,  1912. 

2  Review  of  Reviews,  XXXIV,  620. 

3  These  wells  were  originally  sunk  by  the  government  to  get  a  supply  of 
potable  and  clean  water.  They  are  now  found  throughout  the  Philippines, 
but  the  best  are  in  the  Central  Plain  of  Luzon,  where  the  geological  formation 
is  favorable. 


DEVELOPMENT  IN  AGRICULTURE  193 

whether  subject  to  a  regular  dry  season  or  to  an  even  distri- 
bution of  rain  throughout  the  year,  irrigation  will  give  greater 
stability  to  agriculture  by  making  crops  independent  of  rainfall. 

Small  irrigation  systems  may  be  built  by  the  owners  of  large 
haciendas.  Combinations  of  local  capital  may  be  sufficient 
to  undertake  the  construction  and  maintenance  of  systems 
such  as  are  found  in  Ilocos  Norte,  northern  Tarlac,  and  Boac, 
in  Marinduque.  The  general  interest  taken  in  irrigation  is 
reflected  in  the  claims  filed  for  water  rights,  and  in  the  liti- 
gation over  them.  Corporations  and  associations  are  building 
new  irrigation  systems  of  small  size  here  and  there  in  all 
parts  of  the  Islands.  From  1912  to  1917  about  eight  hundred 
projects  were  under  consideration  or  construction. 

However,  almost  all  irrigation  projects  must  depend  on  the 
initiative  of  the  government.  In  the  past  few  years  the  Bureau 
of  Public  Works  has  repaired  several  of  the  old  irrigation 
systems,  and  greatly  increased  their  efficiency.  At  the  same 
time,  however,  the  construction  of  new,  large  systems  has 
received  the  greatest  amount  of  attention. 

In  India  the  deciding  question  in  determining  what  re- 
gions should  first  receive  the  aid  of  the  government  in  the 
form  of  irrigation  works  has  been.  Will  it  pay?  In  the 
Philippines  the  officials  have  to  consider  the  amount  of  land 
to  be  benefited  and  the  cost  per  hectare,  the  attitude  of  the 
landowners  toward  the  project,  their  ability  to  repay  to  the 
government  the  initial  cost  plus  the  running  expenses,  and 
the  location  of  the  project  with  respect  to  other  projects  of 
a  similar  sort.  It  is  recognized  that  government  works 
should  be  distributed  throughout  the  Islands.  The  revised 
irrigation  law  provides  for  the  collection  of  water  rent  and  run- 
ning expenses  of  the  plant  in  the  form  of  taxes,  the  water 
rent  going  into  a  fund  for  the  repayment  of  the  original  cost. 
Since  this  repayment  tax  is  spread  over  a  term  of  years,  the 
farmer  is  not  seriously  incommoded,  since  the  total  addition 
to  his  taxes  is,  in  normal  years,  but  a  small  part  of  the  addi- 
tional income  received  from  a  more  abundant  crop.    Contrary 


194  ECONOMIC  CONDITIONS 

to  the  custom  in  many  countries,  notably  India,  the  govern- 
ment expects  no  direct  revenue  from  the  irrigation  systems 
which  it  builds.  The  funds  expended  are  regarded  as  the 
money  of  the  people  devoted  to  the  purpose  of  increasing  the 
economic  prosperity  of  the  country. 

Guided  largely  by  these  considerations,  the  officials  in 
charge  of  the  work  are  studying  every  inhabited  region 
where  the  water  supply  and  general  topography  seem  favor- 
able for  irrigation.  Thus  projects  in  Cagayan  and  the  Ilocos 
provinces  are  considered  along  with  those  of  central  and 
southern  Luzon,  Panay,  and  Leyte ;  even  central  Mindanao, 
especially  the  valley  of  the  Cotabato  River,  has  received  a 
preliminary  examination.  In  this  way  irrigable  land  amounting 
to  about  485,000  hectares  has  been  located. ^ 

The  work  is  one  naturally  attended  with  many  difficulties 
and  disappointments.  The  contours  of  the  land  must  be 
accurately  determined,  a  task  which  may  involve  weeks  or 
months  of  labor,  often  in  the  depth  of  the  jungle.  The 
rivers  and  streams  of  the  region  must  be  examined,  and  both 
the  maximum  and  the  minimum  flow  of  water  accurately 
measured.  In  the  typhoon  belt  this  is  extremely  important; 
for  although  money  must  not  be  wasted  in  excessively  strong 
works,  all  construction  must  be  strong  enough  to  withstand 
the  greatest  possible  strain,  even  if  the  rainfall  which  causes 
the  strain  may  not  come  for  a  period  of  many  years.  Then, 
too,  the  composition  of  the  strata  beneath  the  dams  and 
main  canals  must  be  carefully  determined  by  test  wells. 
The  strata  must  be  of  a  kind  not  only  to  support  the  weight 
of  the  dam,  but  to  retain  the  water.  This  is  of  the  utmost 
importance,  since  any  system,  however  expensive,  could  be 
rendered  useless  by  the  excessive  seepage  of  water,  and  the 
collapse  of  a  dam  could  be  brought  about  by  the  flow  of 
underground  waters. 

The  irrigation  system  on  the  friar  lands  of  Cavite  furnishes 
an   example  of  a  successful  project.    This  system  contains 

'^Philippine  Agricultural  Review,  Vol.  V,  No.  4,  p.  178. 


DEVELOPMENT  IN  AGRICULTURE  195 

135  miles  of  ditches,  117  dams,  and  12.5  miles  of  tunnels. 
These  convey  water  to  21,000  hectares  of  land,  which  pro- 
duce yearly  about  1,000,000  cavans  of  rice.  The  product 
per  hectare  averages  from  two  to  four  times  that  of  the 
nonirrigated  lands  of  the  immediate  vicinity.^  The  system  of 
San  Miguel,  in  Tarlac,  irrigates  4000  hectares  of  land ;  that 
at  Pilar,  in  Bataan,  1000  hectares.  The  projected  Santa  Bar- 
bara system,  in  Iloilo  Province,  will  irrigate  4000  hectares,  at 
an  estimated  total  cost  of  F190  per  hectare  ;  it  is  proposed  for 
construction  as  soon  as  legal  requirements  have  been  met.  A 
large  number  of  plans  of  smaller  systems  have  been  examined, 
and  construction  will  begin  as  soon  as  conditions  permit.  These 
projects  include  nearly  every  province  in  the  Islands. 

Unfortunately  the  natural  difficulties  are  not  the  only  ones 
with  which  the  engineers  have  to  contend.  In  some  cases  a 
system  has  been  surveyed  and  found  practicable,  only  to  be 
given  up  because  of  the  opposition  of  the  very  farmers  whom 
it  was  intended  to  benefit.  Various  reasons  are  given  for 
this  opposition,  but  it  seems  to  be  based  on  a  fear  of  the 
annual  taxes  and  the  alienation  of  prior  water  rights.  Such 
opposition  can  best  be  met  by  showing  the  benefits  of  the 
completed  systems;  it  is  dying  out  as  new  systems  are  put 
into  operation  in  different  sections.  To  be  successful,  any 
system  under  government  control  must  be  administered  in 
a  fair  and  just  manner,  as  regards  both  the  collection  of  dues 
and  the  distribution  of  the  water.  Only  in  this  way  can  the 
superintendent  win  and  retain  the  confidence  and  good  will 
of  the  farniers  with  whom  he  has  to  deal. 

Irrigation  in  the  Philippines  is  of  the  greatest  importance. 
It  increases  the  food  supply  by  increasing  the  number  of 
crops,  and  gives  stability  to  agriculture  by  insuring  the  pro- 
duction of  full  crops.  In  general,  however,  the  possibilities 
for  irrigation  are  still  under  investigation. 

The  activities  of  the  Bureau  of  Public  Works  during 
1918,   as  regards   irrigation,   were  confined   largely  to   the 

1  Manila  Times,  May  15,  1912. 


196  ECONOMIC  CONDITIONS 

maintenance  of  systems  constructed  by  the  government,  the 
repair  and  improvement  of  systems  in  the  Friar  Lands 
Estates,  and  the  surveys  and  prehminary  field  investigations 
of  new  projects.  Six  field  parties  were  employed  in  making 
surveys :  San  Jose  project,  Province  of  Nueva  Ecija ;  Laoag- 
Vintar  project,  Province  of  Ilocos  Norte  ;  Botolan  project, 
Province  of  Zambales  ;  Naic  project.  Province  of  Cavite  ;  San 
Mateo  project.  Province  of  Rizal ;  Bulo  River  project,  Province 
of  Bulacan. 

The  area  of  land  covered  by  these  projects  is  approximately 
twenty-three  thousand  hectares.  In  addition  to  these  surveys, 
which  had  been  conducted  under  the  supervision  of  the 
Central  Office,  other  similar  projects  had  also  been  investigated 
by  the  district  engineers. 

In  the  department  which  determines  water  rights  there 
were  filed,  during  the  year  1918,  a  hundred  and  thirty-two 
applications  for  water  rights,  and  a  Imndred  and  twenty-three 
statements  of  existing  water  rights. 

Surveys  and  field  investigations  had  been  completed  on 
the  following  systems  oi  irrigation :  Pansol  Creek,  Province 
of  Bataan  ;  Talisay  River,  Province  of  Bataan ;  Nayom  River, 
Provinces  of  Zambales  and  Pangasinan ;  Sierra  Bullones  River, 
Province  of  Bohol ;  Bued  River,  Provinces  of  Pangasinan  and 
La  Union. 

In  addition  to  these  there  were  six  systems  of  which  the 
surveys  had  been  completed  before  1918,  but  for  which 
the  priority  had  not  yet  been  determined. 

The  surveys  and  field  investigations  of  the  following 
systems  were  to  be  made:  Parasapas  Creek,  Province  of 
Pangasinan ;  Nagsincaoan  River,  Province  of  Ilocos  Sur ; 
Ubbog  Estero,  Province  of  Ilocos  Sur ;  Maitim  River,  Province 
of  Laguna ;  Ange  River,  Province  of  Pampanga ;  Nasisi 
River,  Province  of  Albay ;  Ynarihan  River,  Province  of 
Camarines ;  Gugo  Estero,  Province  of  Tarlac  ;  Buge  Estero, 
Province  of  Tarlac. 


DEVELOPMENT  IN  AGRICULTURE  197 

The  area  of  land  affected  by  the  above  systems  is  approxi- 
mately ten  thousand  hectares,  with  an  approximate  value  of 
three  million  pesos. 

Pests 

Crops  are  more  or  less  subject  to  attack  by  pests.  Some 
pests  have  little  ill  effect  on  the  vitality  of  plants  and  the 
amount  of  yield.  Others  are  very  destructive.  It  is  seldom 
that  pests  can  be  wholly  exterminated,  but  most  of  them 
can  be  held  in  check,  or  the  effects  of  their  ravages  lessened. 
A  few  of  the  methods  used  in  connection  with  different  pests 
may  be  mentioned : 

1.  The  most  obvious  methods,  and  those  used  by  primitive 
and  civilized  peoples  alike,  are  the  mechanical  protections, 
such  as  scarecrows  for  birds,  and  fences  for  pigs.  In  some 
regions  bands  of  tar  or  other  substances  are  applied  to  the 
trunks  of  trees  to  prevent  worms  and  insects  from  crawling 
up  into  the  foliage. 

2.  Many  pests  may  be  killed  by  hand  or  by  mechanical 
means.  For  instance,  locusts  are  driven  into  ditches,  and 
there  exterminated ;  rats  and  other  animals  are  caught  in 
traps  ;  tobacco  worms  are  picked  from  the  plants. 

3.  Poisons  and  insecticides  are  used  throughout  the  world. 

4.  By  careful  study  the  breeding  places  of  pests  may  be 
discovered ;  this  knowledge  offers  an  excellent  method  of 
control.  The  destruction  of  rubbish  and  dead  trees  protects 
coconut  groves  from  the  rhinoceros  beetle  and  other  beetles. 

5.  Sometimes  certain  forms  of  life  destructive  to  pests  are 
found.  The  increase  of  any  insect  would  be  very  large  if 
the  natural  restraints  were  removed.  For  instance,  a  single 
female  of  one  of  the  commonest  moths  lays  more  than  five 
hundred  eggs.  Two  hundred  of  these  may,  under  artificial 
conditions,  become  moths  ;  these  produce  fifty  thousand  eggs. 
Of  these  again  twenty  thousand  moths  reach  maturity  and 
produce  five   million  eggs.    This  is  the  rate  of  increase  of 


198  ECONOMIC  co:n'ditions 

such  insects  living  in  captivity ;  it  shows  that  the  increase 
of  one  moth  in  three  generations  is  equivalent  to  ten  large 
and  devastating  swarms  of  caterpillars.  In  a  wild  state, 
however,  insects  do  not  multiply  at  this  rapid  rate,  because 
of  the  checks  imposed  by  climate,  lack  of  food,  and  enemies. 
Heavy  rains,  wind,  storms,  and  cool  weather  do  much  to 
check  their  multiplication.  In  regions  where  certain  vegeta- 
tion dies  down  for  a  part  of  the  year,  for  example,  during 
the  dry  season  in  parts  of  the  Philippines,  food  is  lacking 
for  many  insects.  Enemies  of  pests  include  parasites,  the 
predatory  insects,  birds,  bats,  and  the  like.  When  insects 
become  abundant,  these  enemies  attack  them  and  reduce 
their  number.  Fungoid  and  bacterial  diseases  also  kill  insects, 
as  they  do  men  and  domestic  animals. 

These  natural  checks  tend  to  prevent  a  large  ratio  of 
increase ;  if  sometimes  they  were  not  temporarily  suspended, 
they  would  keep  the  relative  numbers  of  insects  constant. 
Thus  nature  regulates  the  multiplying  of  insects,  except 
where  man  artificially  changes  conditions  of  life  in  one  or 
more  of  the  following  ways:  (1)  by  introducing  new  insect 
or  animal  life ;  (2)  by  modifying  the  climate  through  the 
destruction  of  forests  or  the  construction  of  large  artificial 
bodies  of  water ;  (3)  by  destroying  insectivorous  birds  ;  (4) 
finally,  and  most  important,  by  altering  plant  life  through 
agriculture  or  forestry.  For  instance,  breeding  places  for 
locusts  have  been  greatly  extended  through  the  destruction 
of  forests  and  the  growth  of  cogon  grass. 

In  the  Philippines  nearly  all  the  insect  enemies  of  the 
crops  are  kept  in  check  by  natural  causes.  One  of  the  most 
important  enemies  of  a  destructive  insect  is  the  fly  which 
lays  its  eggs  in  the  larvae  of  the  pest.  On  hatching  out,  the 
larvae  of  the  fly  destroy  the  larvae  of  the  pest.  Many  pests 
in  the  Phihppines  are  thus  controlled  by  flies.  When  certain 
climatic  conditions  are  favorable,  there  are  extraordinary 
outbreaks  in  the  spread  of  the  rice  caterpillar.    The  larvae  of 


DEVELOPMENT  IK  AGRICULTURE  199 

the  flies  seem  to  increase  in  like  proportion,   however,  and 
thus  no  outbreak  of  this  pest  appears  two  years  in  succession.^ 

6.  Often  one  variety  of  a  plant,  more  hardy  and  better  able 
to  withstand  the  attacks  of  pests,  can  be  substituted  for  other 
varieties.  For  instance,  the  coffee  industry  of  the  Orient  (in- 
cluding the  Philippines)  was  practically  destroyed  by  blight, 
which  cannot  be  controlled  below  a  certain  altitude.  Arabian 
coffee  is  most  susceptible  to  this  disease.  On  the  other  hand, 
other  species  of  coffee,  such  as  the  Liberian,  are  more  or 
less  resistant  to  the  blight.  Hence  such  varieties  and  their 
hybrids  are  frequently  planted  instead  of  the  Arabian. 

7.  Lessening  the  effect  of  pests  by  changing  the  season  of 
planting  is  sometimes  resorted  to.  An  excellent  example  of 
this  is  afforded  by  the  history  of  the  cotton-boll  weevil.  These 
insects  have  found  their  way  into  the  United  States  from 
Mexico ;  they  have  spread  over  half  the  total  cotton  region  of 
the  country.  Although  much  has  been  done  to  control  or 
destroy  them,  no  parasite  or  other  natural  enemy  has  been  dis- 
covered.  They  cannot  be  poisoned,  and  mechanical  means  of 

1  It  is  but  natural  that  man  should  act  on  this  knowledge  of  the  destruc- 
tion of  insects  by  their  enemies,  and  attempt  to  discover  and  introduce 
forms  of  life  that  will  be  destructive  to  pests.  The  most  advanced  agricul- 
tural countries  have  been  lavish  of  money  and  labor  in  searching  for  such 
checks,  but  thus  far  they  have  met  almost  complete  failure.  The  scale 
which  attacked  the  orange  groves  in  California  was  destroyed  by  a  ladybug 
introduced  from  Australia,  but  this  is  an  exceptional  case,  since  the  scale  in 
question  was  also  introduced  from  Australia.  The  inoculation  of  rats  with 
virus  produces  an  epidemic  disease  destructive  to  them.  Large  amounts  of 
time  and  money  have  been  spent  in  searching  for  a  fungus  which  will 
exterminate  locusts.  The  danger  of  introducing  animal  or  vegetable  life 
which  will  in  turn  become  destructive  to  agriculture  must  be  recognized. 
For  instance,  ferrets  have  been  introduced  to  kill  off  rats,  but  are  themselves 
very  destructive  to  poultry.  The  gypsy  moth  was  introduced  into  the  New 
England  States  in  connection  with  scientific  study,  and  has  already  proved 
exceedingly  destructive  to  the  foliage  of  trees.  Millions  of  dollars  have 
been  spent  in  attempts  to  eliminate  this  pest,  and  it  is  only  with  great  diffi- 
culty kept  in  control.  Babbits  were  introduced  into  Australia  for  sport, 
but  they  multiplied  so  rapidly  that  they  became  one  of  the  greatest  sources 
of  damage  to  many  crops.  (See  H.  Manwell-Lef ray's  "  Indian  Insect  Pests," 
Calcutta,  1906,  office  of  the  Superintendent  of  Government  Printing,  India.) 


200  ECONOMIC  CONDITIONS 

killing  them  have  failed.  A  study  of  their  life  history,  however, 
has  brought  out  the  fact  that  they  are  comparatively  few  in 
number  immediately  after  winter,  but  multiply  rapidly  during 
the  warm  weather.  It  had  been  the  custom  in  Texas  to  plant 
cotton  late.  The  plan  now  adopted  is  to  plant  early-ripening 
varieties,  to  secure  a  good  crop  before  the  army  of  weevils 
has  nearly  reached  its  maximum.  The  cotton  field  is  then 
plowed  up  and  burned,  to  kill  as  many  weevils  as  possible. 
Thus  a  profitable  crop  of  cotton  is  grown  where,  under  old 
conditions,  nine  tenths  of  the  normal  crop  was  destroyed.^  The 
boll  weevil  is  found  in  the  Philippines  also. 

The  chief  agricultural  pests  in  the  Philippines  have  already 
been  mentioned  in  connection  with  crops  for  food  and  export. 
Rats  are  particularly  destructive  to  rice.  They  may  be  held 
in  check  by  traps,  poison,  or  virus.  The  chief  enemies  of  corn 
are  weevils,  which  can  be  prevented  by  growing  a  hard  variety 
of  grain  well  covered  by  husk.  Swarms  of  locusts  sometimes 
appear  in  the  Philippines,  particularly  after  an  extraordinary 
dry  spell,  such  as  that  of  1911-1912,  which  is  favorable  for 
their  growth.  They  are  destructive  to  many  crops,  such  as 
rice,  sugar  cane,  corn,  and  coconuts.  Although  they  are 
attacked  by  many  predacious  animals,  insects,  and  fungi, 
they  increase  so  rapidly  that  they  can  be  destroyed  only  by 
mechanical  means  or  by  insecticides.  In  the  Philippines  they 
are  driven  into  trenches  and  killed,  or  insecticides  such  as 
arsenic  and  kerosene  are  used.  Locusts  breed  in  grasslands ; 
when  the  Philippines  become  more  settled,  they  will  probably 
disappear.  In  the  meantime  their  occasional  advent  makes 
necessary  not  only  the  cooperation  of  the  inhabitants  of  the 
regions  affected,  but  the  assistance  of  the  government  to 
annihilate  the  swarms  of  adults,  and  the  young  before  they 
can  fly.  The  control  of  coconut  beetles  by  the  destruction 
of  their  breeding  places  has  already  been  discussed.  The 
tobacco  worms  can  be  held  in  check  by  picking  them  from 

>  Review  of  Keviews,  February,  1904,  pp.  188-191. 


A  Swarm  settled  on  Cultivated  Vegetation 


Photo  bv  Bureau  of  Agriculture 


Effect  on  a  Cornfield 
LOCUSTS 


202  ECONOMIC  CONDITIONS 

the  plants,  and  by  trapping  the  moths  by  light.  In  sparsely 
populated  regions  wild  hogs  and  deer  are  destructive  unless 
kept  out  of  the  fields  by  strong  fences ;  they  are  particularly 
dangerous  to  the  numerous  new  coconut  plantations. 

Only  one  important  industry  in  the  Philippines  has  been 
seriously  affected  by  pests,  and  that  is  the  coffee  industry ;  in 
1889  it  was  practically  destroyed,  but  is  again  becoming  im- 
portant in  certain  highland  regions.  In  general,  it  may  be 
stated  that,  in  view  of  the  climate  and  the  small  amount  of 
attention  given  to  pests  by  the  agriculturists,  the  destruction 
wrought  by  them  is  very  small  indeed.  The  natural  checks 
hold  most  of  them  in  control. 

Agricultural  Machinery 

Civilized  men  have  far  outdistanced  primitive  tribes  in  cul- 
tivating the  soil.  The  kaingin  system  among  the  Subanuns 
has  already  been  discussed;  it  has  been  shown  that  these 
people  cannot  use  the  same  land  for  a  long  series  of  crops, 
because  their  implements  are  too  crude  to  work  in  hardened 
soil  covered  with  grass.  Moreover,  they  do  not  understand 
how  to  treat  the  soil  to  prevent  it  from  hardening  and  to 
retard  its  exhaustion.  Kaingin  are  also  made  by  the  Filipinos 
to  a  small  extent.  Many  clearings  of  a  permanent  nature  are 
also  being  made  each  year ;  for  as  population  increases,  new 
land  must  be  brought  into  cultivation.  In  forests  the  under- 
growth is  cut  down  and  burned,  the  large  trees  are  felled, 
destroyed,  or  removed,  and  the  stumps  are  pulled  up,  blown 
out  by  dynamite,  or  burned.  The  first  crop  planted  is  often 
corn.  On  the  Manobo  farm  of  Butuan  it  has  been  demon- 
strated that  three  years  are  required  to  clear  forest  land  and 
put  the  heavy,  clayey  soil  in  condition  for  general  crops.  The 
cultivation  of  legumes  and  the  use  of  green  manure  have  met 
with  great  success  in  preparing  the  soil.  Cogon  grasslands 
are  burned  off,  broken  up  four  or  five  times  with  the  plow, 
well  harrowed,  and  planted.  The  grasslands  of  the  Philippines 


DEVELOPMENT  IN  AGRICULTURE 


203 


are  best  brought  into  cultivation  by  tractor  or  cable  plows, 
which  are  able  to  tear  the  mass  of  roots  apart. 

The  most  primitive  forms  of  agricultural  implements  are 
those  used  in  the  hack  system,  that  is,  the  digging  stick,  the 
wooden  shovel,  and  the  hoe.  Subanun  and  mountain  peoples, 
as  we  have  seen,  have  not  advanced  beyond  this  system.  The 
Filipinos,  however,  employ  the  plow  and  the  harrow  almost 
entirely.  Indeed,  as  has  been  seen  in  the  rice  industry,  when 
carabaos  and  cattle  are 
not  available  for  pull- 
ing plows,  agriculture 
languishes  or  stops. 
The  Filipino  plow  and 
harrow  are  primitive, 
but  are  being  grad- 
ually superseded  by 
more  advanced  forms. 
The  plow  in  its  sim- 
plest form  consists  of 
a  crooked  limb  of  a 
tree  pointed  at  one 
end.  This  crude,  one- 
handled  affair  merely 
scratches  the  top  of 
the  soil.  A  cast-iron 
share    and    moldboard 

are  now  generally  attached,  and  do  fairly  good  work.  The 
Philippine  harrow  is  made  of  bamboo.  It  does  not  pulverize 
the  ground  thoroughly  enough  to  produce  a  well-prepared  soil. 

Cultivation  of  crops  in  the  Philippines  is  done  by  the 
primitive  plow  or  by  hand.  Except  in  a  few  places  where 
special  machinery  has  been  introduced,  the  crops  are  harvested 
by  hand. 

The  invention  or  adaptation  of  machinery  is  not  a  simple 
matter;  as  mentioned  in  the  discussion  of  rice  machinery,  it 
must  be  the  product  of  experience.   For  instance,  all  the  heavy 


PHILirrixNK  I'LUW   AM»  HAKKUW 


204 


ECONOMIC  CONDITIONS 


plows  imported  into  the  Philippines  have  proved  unsuccessful ; 
the  lighter  and  smaller  plows  have  given  satisfaction,  but  are 
too  expensive.  Furthermore,  the  point  at  which  the  carabao 
is  attached  to  the  plow  must  be  lower  than  that  at  which  the 
American  horse  is  hitched.  Experience  has  proved  that  plow 
points  and  shares  made  of  the  iron  from  Angat,  in  Bulacan, 
give  great  satisfaction  in  most  Philippine  soil.  From  this  com- 
position of  metal  probably  better  plows  can  be  made  than  those 
which  are  at  present  being  imported  into  the  Philippines. 


A  MODERN  PLOW  AT  WORK 

Until  1910  little  had  been  accomplished  in  the  introduction 
of  more  advanced  agricultural  machinery  into  the  Philippines. 
Recently,  however,  much  interest  has  been  shown,  and  large 
and  small  machinery  has  been  imported  in  considerable  quan- 
tity. Much  can  be  done  in  adapting  such  machinery  to  local 
conditions.  The  problems  connected  with  agricultural  machin- 
ery in  the  Philippines  relate  to  two  classes:  small  agricul- 
tural implements  for  small  owners  and  small  fields ;  large 
machinery  adapted  for  use  on  sugar  plantations  and  other 
large  areas.    For  the  small  farmers  a  light  general  plow,  a  hght 


PLOWING    WITH   A    GASOLINE    TRACTION    ENGINE,    AN    OLD    AND    GEN- 
ERALLY   UNSUCCESSFUL    TYPE  IN    THE    PHILIPPINES 


A  SMALL  KEROSENE-BURNING  TRACTOR  THAT  HAS  PROVED  SATISFAC- 
TORY IN  THE  PHILIPPINES  ON  SUGAR  LANDS  AND  OTHER  DRY  LANDS 


206  ECONOMIC  CONDITIONS 

disk  harrow,  an  iron  smoothing  harrow,  one-row  corn  planters 
and  drills,  and  two-shovel  or  three-shovel  cultivators  are  neces- 
sary. These  must  be  built  to  sell  within  the  purchasing  power 
of  the  small  owner.  For  large  sugar  plantations  and  other 
estates  power  machines,  both  traction  and  cable,  are  required ; 
these  also  must  meet  the  local  conditions  of  soil  and  cultivation.^ 


Remedies  for  the  Exhaustion  of  Soil 

The  tendency  of  plants  to  exhaust  the  soil  can  be  retarded 
or  prevented  in  four  ways: 

1.  Exhaustion  may  be  retarded  in  certain  instances  by 
fallowing.  This  is  practiced  in  the  Philippines  in  the  culti- 
vation of  sugar  cane,  where  after  the  crop  is  gathered  the 
land  is  allowed  to  remain  idle.  If  only  one  crop  is  raised, 
and  the  fields  are  allowed  to  lie  idle  during  the  dry  season, 
rice  does  not  seem  to  exhaust  the  land.  Cases  may  be  cited 
where  large  areas  have  grown  rice  for  at  least  a  hundred 
years,  and  still  produce  crops  without  the  use  of  fertilizer; 
this  is  probably  due  to  the  effect  of  the  sun  and  air  on  the 
soil  during  the  dry  season.  Nearly  all  the  soils  given  to  rice 
crack  open  when  exposed  to  the  air  and  the  sun.^ 

2.  The  fertility  of  the  soil  may  also  be  mamtained  by 
rotating  certain  crops.  In  temperate  regions  the  rotation  of 
crops  has  been  carefully  studied,  but  not  much  investigation 
has  been  made  in  the  tropics.  One  authority ,3  however,  has 
suggested  that  such  crops  as  yams  (ubi,  etc.)  be  planted  the 
first  year,  corn  the  second,  sweet  potatoes  (camotes)  the  third, 
and  castor  oil  or  some  such  crop  the  fourth.  Sugar  cane  is 
frequently  followed  by  beans  and  corn ;  rice  is  then  planted 
and  followed  by  beans  and  corn  again ;  then  comes  a  second 
crop  of  rice,  after  which  sugar  cane  is  again  planted.  An 
important  effect  of  rotation  is  the  resting  of  the  various  layers 

1  From  information  by  the  machinery  expert,  Bureau  of  Agriculture. 

2  Bulletin  No.  2£,  Bureau  of  Agriculture,  Manila. 

*  H.  A.  Alford  NichoUs  in  "Tropical  Agriculture." 


DEVELOPMENT  IN  AGRICULTURE  207 

of  soils,  since  the  roots  of  different  plants  are  sent  down  to 
different  depths.  In  addition,  a  proper  system  of  crop  rota- 
tion prevents  vegetable  and  animal  pests.  Although  different 
crops  are  planted  one  after  another  in  the  Philippines,  the 
idea  of  the  planter  is  not  to  rest  the  soil,  but  rather  to  use 
the  land  as  much  as  possible.  In  the  Cagayan  Valley  tobacco 
and  corn  are  rotated.  In  other  districts  rice  alternates  with 
sweet  potatoes  or  other  tubers. 

3.  Some  plants,  such  as  green  gram  and  the  cowpea,  gather 
nitrogen  with  their  roots,  and  leave  it  in  the  soil.  Many  times 
the  plant  is  not  used  at  all,  but  is  cut  off  before  it  matures  and 
turned  into  the  soil.  These  crops  are  planted  with  or  before 
starch  crops,  such  as  the  potato,  the  growth  of  which  is  aided 
by  the  nitrogen  thus  left  in  the  soil.  This  fact  has  been  under- 
stood in  the  Philippines,  and  green  gram  is  sometimes  planted 
before  a  starch  crop.  The  cowpea  and  manioc  have  been  rec- 
ommended as  crops  which  can  be  planted  together,  the  cow- 
pea supplying  the  nitrogen  needed  by  the  manioc.^  In  the 
regions  affected  by  the  dry  season,  but  provided  with  irriga- 
tion facilities,  a  crop  rotation  of  corn  with  cowpeas  between 
the  rows,  planted  during  the  dry  season  and  followed  by  two 
crops  of  rice,  would  probably  be  successful.  Since  the  first 
period  in  the  growth  of  rice  occurs  in  seed  beds,  it  is  possible 
to  accomplish  this  rotation  within  the  space  of  one  year. 

4.  Exhaustion  of  the  soil  may  be  prevented  by  adding  fer- 
tilizers to  it.  Fertilizers  are  usually  divided  into  two  classes : 
(«)  the  general  fertilizers,  which  include  farmyard  manure, 
ashes  of  the  waste  part  of  crops  produced  on  the  land,  the 
waste  products  of  towns,  and  the  like ;  (6)  special  fertilizers, 
or  artificial  fertilizers,  sometimes  also  called  commercial  ferti- 
lizers, which  contain  large  quantities  of  nitrogen,  phosphates, 
lime,  and  potash,  in  varying  proportion,  according  to  the  crops. 
Special  fertilizers  are  made  from  numerous  products,  such  as 
guano,  bones,  oil  cakes,  slag,  shells,  gypsum,  and  many  other 

1  Journal  of  Science,  Vol.  Ill,  No.  2,  Sect.  A. 


208  ECONOMIC  CONDITIONS 

minerals.    Unless  these  fertilizers  are  applied  properly,  how- 
ever, they  may  do  more  harm  than  good. 

On  account  of  the  abundance  and  cheapness  of  land  in  most 
places  the  Filipinos  have  never  carefully  studied  the  remedies 
for  the  exhaustion  of  the  soil. 


Improvement  in  Ceops 

In  the  first  chapter  it  has  been  seen  that  most  Negritos 
now  plant  a  few  crops;  that  the  Subanuns  are  fairly  well 
advanced  both  in  the  number  of  plants  grown  and  in  the  variety 
produced ;  and  that  the  mountain  peoples  excel  both  these 
tribes  in  agriculture.  It  is  a  natural  thing  that  man  should 
eventually  plant  the  roots  and  cereals  which  he  primitively 
found  and  consumed  in  a  wild  state.  When  he  has  grasped 
the  idea  of  agriculture,  he  increases  the  number  and  quality 
of  his  crops  by  importing  new  plants,  and  by  breeding, 
cultivating,  and  selecting  them. 

Improvement  in  cultivation  is  illustrated  by  every  crop 
now  grown  by  man.  Plants  freed  from  the  noxious  effects  of 
weeds,  and  cultivated  in  soil  more  or  less  carefully  prepared, 
produce  their  fruit  in  larger  proportions  than  when  growing 
wild.  Moreover,  the  greater  the  care  exercised  in  cultivatmg 
the  crop,  the  greater  is  its  utility.  The  kernels  of  grains  have 
increased  in  size  and  number  over  the  wild  grasses  from  which 
they  came.  Vegetables  have  increased  in  size  and  palatability. 
The  size,  color,  and  flavor  of  fruits  have  been  improved,  and 
the  seeds  of  many  of  them  have  been  reduced  in  size  or  even 
eliminated. 

The  tendency  of  plants  to  improve  in  favorable  localities 
with  careful  cultivation  is  emphasized  by  selecting  the  seeds 
of  the  best  plants  for  reproduction.  Less  advanced  agricultural 
peoples  usually  practice  seed  selection  unwittingly.  Accord- 
ing to  Mr.  Roy  F.  Barton,  the  excellence  of  rice  in  Ifugao  is 
probably  due  in  great  part  to  the  selection  of  seed.^   In  most 

1  Economic  Report  by  Roy  F.  Barton,  Ifugao. 


An  Excellent  Type 


Photo  by  Bureau  of  Agriculture 


An  Inferior  Type 
CITROUS  FRUITS 


Photo  by  Bureau  of  Agricultuw 


210  ECONOMIC  CONDITIONS 

districts  the  largest  heads  having  the  largest  grains  are  care- 
fully selected  and  bound  into  bundles  for  the  next  year's 
planting;  this  custom,  however,  is  not  due  to  any  scientific 
knowledge  on  the  part  of  the  Ifugaos,  but  to  a  religious  super- 
stition, for  they  believe  that  if  large  grains  from  large  heads 
are  planted,  the  next  year's  crop  will  have  large  grains  and 
large  heads.  Improvement  by  selection  is  understood  and 
intelligently  carried  out  only  among  the  most  advanced  agri- 
cultural peoples.  Thus  varieties  of  wheat  from  the  northern 
part  of  North  America  mature  in  much  less  time  than  those 
from  the  southern  part ;  as  has  already  been  noted,  the  intro- 
duction of  the  quickly  maturing  northern  cottons  into  Texas 
has  partly  solved  the  problem  of  the  boll  weevil.  In  the 
United  States  flax  plants  are  grown  for  their  seed,  in  Russia 
for  their  fiber.  In  many  parts  of  the  Philippines  the  pineapple 
plant  is  valued  for  its  fiber  rather  than  for  its  fruit.  In  the 
United  States  one  variety  of  corn  may  be  grown  because  it  is 
rich  in  oil,  another  because  it  contains  more  starch  in  propor- 
tion to  the  other  constituents.  In  the  same  way  certain  wheats 
are  selected  and  grown  for  the  macaroni  trade,  since  these  con- 
tain a  larger  proportion  of  gluten  than  the  ordinary  wheats. 

In  general,  it  is  true  that  the  Filipinos  do  not  understand 
the  improvement  of  plants  by  seed  selection.  On  the  contrary, 
selection  in  certain  crops  is  often  so  made  that  the  best  plants 
are  consumed  or  sold,  the  poorest  being  left  to  produce  the 
seed  for  the  next  season's  crop.  Perhaps  one  exception  should 
be  noted,  and  that  is  the  selection  of  the  variety  of  rice.  In  a 
few  localities  the  best  varieties  are  always  selected.  After  the 
drought  of  1911-1912  early  varieties  were  planted  in  many 
localities,  so  that  the  crop,  being  planted  late,  would  mature 
more  rapidly  than  usual.  But,  as  has  already  been  noted  in 
the  discussion  of  rice,  it  is  seldom  that  any  attempt  is  made 
to  select  the  best  heads  in  the  field  for  raising  the  next  season's 
crop.  Probably  every  crop  grown  by  Filipino  agriculturists 
could  be  improved  by  selection. 


DEVELOPMENT  IN  AGRICULTURE  211 

It  must  not  be  thought  that  the  great  advance  made  in  the 
varieties  and  types  of  plants  has  resulted  only  from  selection 
in  the  fields.  Certain  men  have  made  the  evolution  of  new 
plants  their  life  work ;  their  results  have  been  accomplished 
both  by  selection  and  by  crossbreeding.  Examples  may  be 
taken  from  almost  every  kind  of  agriculture.  Two  of  impor- 
tance to  the  Philippines  are  corn  with  ears  well  covered  by 
the  husk  as  a  protection  against  weevils,  and  the  hybrid  coffees, 
which  are  more  resistant  to  the  coffee  pest  than  the  Arabian 
species. 

Diversity  of  Crops 

The  Philippines  are  an  excellent  example  of  a  country  where 
agriculture  is  largely  dependent  on  foreign  plants.  We  do 
not  know  what  plants  were  brought  into  the  Philippines  before 
the  arrival  of  the  Spaniards,  but  the  Europeans  found  already 
growing  there  rice,  coconuts,  sugar  cane,  yams,  taro,  bananas 
(including  abaca),  and  several  other  plants  of  minor  utility. 
Since  that  time  tobacco,  corn,  maguey,  cacao,  coffee,  the  papaya, 
chico,  guava,  a  great  variety  of  vegetables,  and  several  other 
minor  economic  plants  have  been  introduced  from  Central 
America  and  other  parts  of  the  tropics.  Even  to-day  new 
plants,  such  as  the  fruit  called  the  roselle,  are  bemg  brought 
into  the  Philippines.  The  introduction  of- plants  was  formerly 
due  to  the  activities  of  merchants,  travelers,  or  sea  captains ; 
but  to-day  governments  and  even  private  individuals  send  out 
agricultural  explorers  to  search  the  world  over  for  plants  that 
will  grow  in  certain  soils  and  climates.  Thus  the  agriculture  of 
all  advanced  countries  is  becoming  more  and  more  diversified. 

It  must  not  be  thought  that  diversity  of  production  is  synon- 
ymous with  self-sufficiency.  The  policy  which  has  for  its  aim  the 
domestic  production  of  all  articles  required  by  the  family,  the 
community,  or  the  country  is  open  to  criticism.  On  the  other 
hand,  the  policy  which  makes  the  agriculturist,  the  agricul- 
tural community,  or  the  country  dependent  on  one  crop  places 


212  ECONOMIC  CONDITIONS 

agriculture  on  an  unstable  basis,  particularly  in  the  tropics, 
where  the  amount  of  yield  and  the  demand  for  certain  agricul- 
tural products  fluctuate  so  much.  The  history  of  commercial 
tropical  agriculture  seems  to  present  a  succession  of  rich  crops. 
The  uses  of  a  certain  tropical  plant  being  recognized  in  Europe 
and  America,  its  planting  was  begun  in  the  tropics.  A  brisk 
demand  for  its  product  ensued,  and  good  returns  were  realized. 
Then  there  was  a  rush  to  extend  the  plantings  and  to  take 
advantage  of  the  rising  prices  and  large  profits.  Methods  of 
planting  and  of  producing  the  commodity  exported  received 
little  attention.  There  was  much  waste  from  poor  methods, 
and  the  land  was  not  utilized  to  its  full  capacity  because  energy 
was  concentrated  on  this  one  crop.  Extensive  rather  than 
intensive  methods  were  employed,  but  large  profits  were  made 
by  reason  of  the  high  prices  obtained  for  the  product. 

But  the  turning  point  was  always  reached;  then  the  in- 
dustry was  given  up,  or  was  placed  on  a  stable  basis,  so  that 
good  profits  might  be  made  through  careful  methods  of  agri- 
culture. Sugar  of  the  West  Indies  is  an  example  of  an  industry 
almost  destroyed  and  later  placed  on  a  sound  basis.  Enormous 
profits  were  first  made  with  crude  methods;  but  as  soon  as 
economic  methods  and  government  aid  produced  sugar  more 
cheaply  from  beets,  the  sugar  industry  was  almost  abandoned. 
It  was  renewed  only  by  adopting  improved  methods  from  the 
beet-sugar  industry.  In  Ceylon  the  profits  in  coffee  were 
wiped  out  by  a  pest;  later  the  Cinchona  industry  felt  the 
effects  of  overproduction.  The  indigo  plantations  which  for  a 
time  produced  such  large  fortunes  in  the  Ilocos  provinces  of 
the  Philippines  were  made  unprofitable  by  the  production  of 
synthetic  indigo.  The  competition  of  sisal  fiber  helped  to  reduce 
the  profits  from  abaca  plantations,  and  will  probably  affect  that 
industry  seriously  unless  better  methods  are  employed  in  the 
cultivation  and  stripping  of  abaca.  Millions  of  coconuts  are 
now  being  planted  in  the  tropics.  This  is  due  to  the  high  prices 
offered  for  copra.  But  the  demand  will  sometime  be  supplied, 
and  profits  will  then  be  made  only  from  groves  which  are  well 


DEVELOPMENT  IN  AGRICULTURE  213 

planted  and  cared  for,  and  of  which  the  product  is  carefully 
prepared.  The  small  plantings  of  maguey  are  profitable  in  the 
Philippines  when  the  price  of  agave  fibers  is  high.  With  the 
increased  production  and  low  price,  maguey  is  profitable  only 
in  large  plantations  where  every  advantage  can  be  taken  of 
the  reduced  cost  of  large  production  and  of  most  advanced 
methods. 

Since  the  Philippines  produce  export  crops,  they  are  depend- 
ent on  foreign  countries  for  a  large  portion  of  their  food  supply. 
The  Islands  import  rice  because  large  regions  produce  abaca 
fiber,  copra,  sugar,  or  tobacco  for  export,  and  take  rice  in  ex- 
change. Hence  a  short  crop  in  southeastern  Asia,  or  political 
unrest  there,  means  a  curtailment  of  the  rice  supply  of  the 
Philippines,  high  prices,  and  suffering  among  the  poor.  The 
ideal  condition  would  be  one  in  which  the  Philippines  produce 
enough  rice  to  supply  local  needs,  raising  and  exporting  prod- 
ucts only  in  exchange  for  cotton  goods,  steel,  luxuries,  and 
other  articles  which  cannot  be  produced  here  at  all,  or  only 
at  a  much  higher  cost  than  that  of  imported  goods. 

It  is  interesting  to  note  that  Laguna  Province  was  not 
much  affected  by  the  scarcity  of  food  after  the  drought  of 
1911-1912  for  the  reason  that  the  diversified  products  raised 
there  insured  the  people  against  famine.^  On  the  other  hand, 
after  the  typhoon  of  1898,  which  partially  destroyed  the  copra 
and  abaca  of  Masbate,  the  rice  imports  into  Masbate  dimin- 
ished because  the  people  had  nothing  left  to  exchange  for  rice.^ 
This  condition  caused  a  considerable  amount  of  suffering 
among  them,  and  many  had  to  take  to  the  hills  to  find  food. 
Another  interesting  example  is  that  of  the  people  of  Cagayan 
Jolo,  who  had  depended  almost  entirely  for  their  living  on 
the  exportation  of  copra  and  cattle,  and  had  bought  their  rice 
from  Palawan.3  In  1910  this  source  of  supply  was  suddenly 
cut  off ;  several  trading  boats  were  sent  to  the  Palawan  coasts, 

1  Economic  report  by  R.  G.  McLeod. 

2  Economic  report  by  James  C.  Scott. 
*  Economic  report  by  H.  C.  Stanton. 


214  ECONOMIC  CONDITIONS 

but  returned  empty.  Hence,  although  the  people  had  plenty 
of  copra  and  cattle,  they  were  unable  to  buy  rice,  and  had  to 
subsist  on  coconuts  and  a  limited  amount  of  wild  roots  found 
on  the  island.  They  immediately  began  to  plant  camotes  and 
rice,  but  on  account  of  their  inexperience  their  first  crop  was 
practically  a  failure.  The  second,  however,  was  much  better ; 
at  present  the  possibility  of  a  rice  famine  on  Cagayan  Jolo  is 
remote.  Another  pertinent  example  may  be  taken  from  the 
abaca  region  of  the  Bicol  Peninsula.  If  the  occupants  of  the 
small  abaca  fields  would  plant  food  crops  about  their  houses, 
instead  of  being  dependent  on  abaca,  they  would  be  able  to 
tide  themselves  over  the  times  when  the  low  price  of  hemp 
does  not  provide  an  adequate  living.  As  it  is,  they  abandon 
their  fields  when  the  price  of  hemp  becomes  so  low  that  they 
cannot  obtain  a  living  by  stripping  it.  In  the  two  great  crises 
of  the  hemp  industry,  namely,  in  1911-1912  and  1919,  the 
situation  was  complicated  by  an  increase  in  the  price  of  rice 
coincident  with  the  decrease  in  the  price  of  hemp.  The  plant- 
ing of  more  food  crops  and  of  coconuts  in  the  abaca  regions 
would  give  greater  stability  to  the  hemp  industry  by  making 
the  people  less  dependent  on  it  for  existence. 

It  holds  for  the  individual,  the  family,  the  community,  and 
the  country,  that  the  safest  and  sanest  condition  of  agriculture 
is  one  in  which  a  sufficient  amount  of  food  is  raised  locally 
to  provide  for  ordinary  needs,  and  export  crops  are  grown  to 
exchange  for  products  not  necessary  for  existence.  It  is  prob- 
able that  the  food  crops  raised  in  the  Philippines  could  be 
increased  to  the  point  of  supplying  local  demand  without 
decreasing  the  amount  of  land  devoted  to  export  crops.  The 
yield  of  rice  and  corn  to  the  acre  can  be  made  larger,  and 
much  idle  land  can  be  brought  into  cultivation.  The  present 
difficulty  of  providing  a  domestic  supply  of  food  can  be  met 
not  only  by  a  general  increase  in  the  production  of  rice  and 
corn,  but  by  a  greater  utilization  of  small  parcels  of  land  in 
such  crops  as  corn,  sweet  potatoes,  beans,  bananas,  and  gar- 
den vegetables,  in  patches  for  family  or  local  consumption 


DEVELOPMENT  IN  AGRICULTURE  215 

supplementary  to  the  staple  food.  Great  progress  has  already 
been  made,  but  there  is  still  much  to  be  done  before  the 
Islands  can  be  economically  independent  so  far  as  food  is 
concerned.  The  experiences  of  1919  and  the  food  shortage 
indicate  the  dangerous  condition  of  the  Islands. 

Summary 

The  Philippines  are  not  among  the  more  advanced  agricul- 
tural countries  of  the  world.  However,  this  is  a  situation 
not  without  hope.  The  farmers  in  what  are  now  the  advanced 
agricultural  countries  did  not  work  out  their  problems  by 
themselves  alone.  The  greatest  and  most  lasting  results 
have  been  obtained  from  the  study  and  experiments  of  expert 
agriculturists  and  scientists  in  different  parts  of  the  world, 
and  have  been  carried  to  farmers  by  all  the  modern  means  of 
publicity,  such  as  publications,  lectures,  and  demonstrations. 

Efforts  for  bettering  agricultural  conditions  in  the  Philip- 
pines have  extended  over  a  period  of  several  years.  It  is 
probable  that  advance  in  agriculture  in  the  Islands  will  be 
slow,  but  with  the  education  of  the  masses,  and  with  the 
example  set  for  them  by  agriculturists  who  have  had  special 
training  or  experience,  adoption  of  modern  methods  will 
ultimately  follow. 

Like  those  of  other  countries,  the  farming  districts  in  the 
Philippines  differ  in  the  character  and  the  intelligence  of 
their  population.  In  the  wealthiest  and  most  progressive 
communities  a  considerable  advance  in  agriculture  has  occurred 
in  the  last  few  years. 

Three  factors  that  are  bringing  about  general  improvement 
in  agriculture  warrant  special  mention.  First,  the  prosperity 
of  the  Philippines  in  recent  years  has  increased  the  purchas- 
ing power  of  the  agriculturists  and  given  them  the  funds 
necessary  to  improve  their  lands  and  purchase  machinery. 
Many  farmers  have  used  to  advantage  their  increased  means. 
Secondly,  the  government  control  of  grading  tobacco  and 


216  ECONOMIC  CONDITIONS 

abaca  has  encouraged  better  methods  in  these  crops.  Thirdly, 
special  schools  exercise  an  ever-widening  influence  on  agri- 
culture. By  1918  there  had  been  established  in  the  Islands 
twelve  agricultural  schools  and  fifteen  farm  schools,  besides 
one  hundred  and  twenty  settlement  farm  schools. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

I.  What  are  the  chief  problems  connected  with  the  improve- 
ment in  agriculture  in  the  Philippines  ?  2.  Do  these  more  closely 
resemble  the  development  and  problems  of  agriculture  in  the 
United  States,  or  of  agriculture  in  China  and  Japan  ?  Explain. 
3.  Explain  the  conditions  and  factors  which  are  now  bringing 
about  improvement  in  Philippine  agriculture.  4.  The  relation  of 
capital  to  development  in  agriculture  (a)  in  large  agricultural 
enterprises ;  (b)  among  small  farmers. 

5.  Agricultural  calamities  in  the  Philippines.  6.  How  their 
effects  may  be  mitigated.  7.  How  the  government  assists  the 
victims. 

8.  The  drought  of  1912  was  unfavorable  to  rice  and  favorable 
to  sugar  cane.  Explain  why.  9.  You  are  the  manager  of  a  large 
sugar,  coconut,  or  abaca  plantation.  A  drought  occurs.  What 
steps  might  you  take  to  save  your  crop? 

10.  Explain  the  value  of  irrigation  in  times  of  drought,  with 
relation  to  water  control  and  planting  and  harvesting ;  in  the 
growing  of  more  than  one  crop  annually  on  the  same  piece  of 
land ;  in  the  production  of  long-maturing  crops. 

II.  Compare  the  extent  of  irrigated  lands  of  India,  Egypt,  and 
the  Philippines. 

12.  Private  and  government  activities  in  the  Philippines  in 
building  irrigation  systems  ;  what  has  been  accomplished ;  future 
activities  as  planned. 

13.  Explain  the  methods  of  controlling  pests.  14.  List  the 
problems  of  agricultural  pests  in  the  Philippines  under  these 
methods. 

15.  State  the  problems  with  respect  to  agricultural  machinery 
in  the  Philippines. 


DEVELOPMENT  IN  AGRICULTURE  217 

16.  From  the  history  of  the  coffee,  indigo,  tobacco,  sugar,  and 
abaca  industries  select  incidents  showing  the  danger  of  depending 
on  one  crop.    17.  How  can  this  danger  be  guarded  against  ? 

17.  The  Governor  of  the  Department  of  Mindanao  and  Sulu 
has  advised  hog  drives  on  a  large  scale  among  the  settlers  who 
are  too  limited  in  their  means  to  fence  their  places  with  woven 
wire.  The  idea  of  these  drives  is  that  the  whole  community  shall 
engage  in  them  for  the  purpose  of  exterminating  or  driving  away 
as  many  wild  hogs  as  possible,  and  to  make  of  the  occasion  a 
fiesta.    Comment  on  this  plan. 

18.  Under  the  authority  of  the  Administrative  Code  of  the 
year  1917  the  Director  of  Agriculture  forbade  the  importation  of 
fresh  fruits,  except  bananas  and  pineapples,  from  certain  foreign 
countries  infested  with  the  Mediterranean  fruit  fly,  including 
Spain,  France,  Italy,  Australia,  and  the  Hawaiian  Islands.  Explain 
why  the  government  took  this  precaution  (United  States  Agri- 
cultural Year  Book,  1917). 

19.  The  following  is  an  extract  from  a  newspaper  of  July  13, 
1919: 

The  economic  situation  of  the  province  is  reported  to  be  the  worst 
the  people  have  ever  experienced ;  hemp,  the  only  product  that  gives 
the  people  a  living  is  hardly  bought,  while  rice,  upon  which  the  people 
depend,  is  quoted  at  an  excessively  high  price. 

How  might  the  people  of  Sorsogon  have  averted  this  situation  ? 
20.  What  steps  do  you  suppose  they  took  to  provide  themselves 
with  food  ? 

21.  In  spite  of  the  stagnation  of  the  hemp  industry  the  Philip- 
pines as  a  whole  were  prosperous  in  1919.  Why  ?  22.  Would  they 
have  been  prosperous  if  the  hemp  industry  had  been  stagnant  in 
1907  ?  (See  Chart  XI.) 

Suggestions  for  the  Study  of  Local  Conditions 

1.  The  fundamental  needs  for  improvement  in  agricultural 
methods  in  the  locality.    2.  Is  any  advance  being  made  ? 

3.  Special  reports  on  local  pests. 
.     4.  The   citrus  canker  in  its  relation  to  the  orange  industry. 
(Where  orange  trees  are  important.) 


218  ECONOMIC  CONDITIONS 

5.  Extension  of  the  use  of  the  modern  plow  on  small  farms. 
6.  How  it  has  been  brought  about.  7.  Details  of  its  construction. 
8.  Results  from  its  use. 

9.  Diversity  of  crops  in  the  locality. 

10.  List  of  plants  recently  introduced  into  the  locality. 

11.  Remedies  applied  to  the  exhaustion  of  the  soil.  12.  Im- 
provements in  crops  noted. 

13.  If  there  is  an  area  of  land  that  you  think  capable  of  irriga- 
tion, bring  in  a  report  on  the  project,  discussing  such  points  as 
ownership  of  water  rights ;  source  of  water,  amount,  reliability ; 
proposed  works ;  contour  of  the  land,  drainage ;  soils,  crops ; 
distribution  of  the  water  among  landowners ;  water  charges  and 
payment  of  the  cost  and  upkeep  of  the  system. 

Suggestions  for  Reports  from  References 

1.  Go  through  current  publications  (including  commercial 
geographies)  and  describe  the  different  kinds  of  agricultural 
machinery  found  there. 

2.  How  the  industry  of  agricultural  implements  in  the  United 
States  originated.  3.  How  it  has  been  conducted.  4.  Its  relation  to 
agriculture  in  America.    5.  Its  expansion  into  foreign  countries. 

6.  During  the  World  War  the  depletion  of  farm  labor  and  work 
animals,  and  the  necessity  for  increasing  agricultural  products, 
resulted  in  the  successful  application  of  the  gasoline  tractor  to 
agriculture.  These  farm  tractors  are  small  and  compact,  and  have 
been  successful  in  the  United  States  and  Great  Britain.  The 
caterpillar  tractors  are  adapted  to  moist  and  uneven  ground. 
Bring  in  a  report  on  the  use  of  these  small  tractors  in  the  Philip- 
pines ;  explain  their  special  importance  here  in  relation  to  the 
rinderpest  and  the  scarcity  of  work  animals. 

7.  Types  of  machinery  that  might  be  used  in  rice  cultivation. 
8.  Improvement  in  the  plow  used  in  the  Philippines. 

9.  The  food  supply  of  the  United  States.    (Finch  and  Baker.) 

10.  The  conservation  of  fertility  in  rice  fields.  11.  A  study  of 
methods  used  in  China  and  Japan.  12.  Intensive  agriculture  in 
Japan.  13.  A  study  of  the  methods  of  food  production  in  an  over- 
populated  country.  14.  Gardening  in  China.  (King's  "Farmers 
of  Forty  Centuries  "  may  be  consulted  for  all  these  topics.) 


DEVELOPMENT  IN  AGRICULTURE  219 

15.  From  some  civic  biology  ^such  as  Hodge  and  Dawson's) 
bring  in  a  report  on  the  economic  importance  of  fungous  diseases, 
illustrating  it  with  examples  from  the  Philippines. 

16.  In  some  biology  (such  as  Hodge  and  Dawson's  "Civic 
Biology  ")  read  carefully  the  material  on  the  control  of  pests.  Make 
an  outline  of  the  problems  and  apply  them  so  far  as  possible  to 
the  Philippines,  using  examples. 

17.  Philippine  birds  in  their  economic  relation  to  man.  (Publica- 
tions of  the  Bureau  of  Science  will  be  of  assistance  on  this  subject.) 
18.  The  control  of  dangerous  agricultural  pests  by  the  Bureau  of 
Agriculture  under  the  authority  of  Acts  2515  and  1757. 

19.  In  1918  "Abaca  heart  rot"  was  found  in  Laguna  and 
Cavite.  It  is  thought  to  have  originated  in  old,  poorly  cultivated 
patches  of  abaca.  A  quarantine  was  established,  and  experiments 
were  undertaken  for  its  control.  Report  on  the  history  of  this 
disease  since  that  time. 

20.  The  "  pink  disease  "  (fungous)  was  discovered  in  the  Philip- 
pines in  1918.  It  had  evidently  been  introduced  on  plants 
imported  for  experimental  purposes.  It  attacks  one  hundred  and 
seventy-five  species  of  trees,  many  of  them  being  fruit  trees. 
Bring  in  a  report  on  the  course  of  this  disease  in  the  Philippines 
since  1918. 

21.  A  comparison  of  the  water  resources  of  the  United  States 
and  the  Philippines.    (Brigham,  pages  180-201.) 

22.  Forests  and  their  relation  to  water  supply.  23.  Deforesta- 
tion and  deserts.  24.  Reforestation  in  Europe,  America,  China, 
the  Philippines. 

25.  How  water  rights  are  secured  and  protected  by  Philippine 
laws. 

Selection  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  Chapter 

Capital  as  a  factor  of  production  in  agriculture.  (Bullock, 
pages  45-48.) 


CHAPTER  XII 

LAND  TENURE 

Introduction 

The  total  land  area  of  the  Philippines  is  about  120,000 
square  miles,  or  30,000,000  hectares/  It  will  be  seen  by 
referring  to  Chart  XXVIII  that  one  half  of  this  area  is 
forested  and  the  other  half  open  land.  It  is  probable  that 
all  this  area  was  once  forested,  and  that  not  until  the 
Malayan  peoples  came  were  kaingin  and  permanent  clearings 
made  which  resulted  in  open  lands.  About  one  third  of  the 
original  virgin  forest  remains ;  one  sixth  has  grown  up  again 
in  second-growth  forest ;  about  forty  per  cent  is  open  grass- 
land ;  and  only  ten  per  cent  of  the  total  area  is  now  cultivated.^ 

The  problems  concerning  tenure  of  Philippine  agricultural 
hnds  fall  under  two  considerations:  (1)  the  size  of  parcels; 
and  (2)  the  system  of  cultivation  with  respect  to  laborer, 
owner,  and  country. 

Size  of  Parcels 

'     Most  primitive  peoples  have  no  conception  of  ownership 
of  land;  for  they  do  not  occupy  a  region  permanently,  and 

1  The  following  areas  are  given  for  comparison  : 

Cuba,  44,000  square  miles  Japan,  175,000  square  miles 

Austria,  116,000  square  miles  Chile,  291,000  square  miles 

Ecuador,  116,000  square  miles  Mexico,  767,000  square  miles 

Philippine  Islands,  120,000  square  miles  India,  1,773,000  square  miles 

Great  Britain,  121,000  square  miles  United  States,  3,567,000  square  miles 

2  These  estimates  are  from  reports  by  the  Bureau  of  Forestry.  The  Bureau 
of  Agriculture  estimates  the  area  of  cultivated  land  as  15  per  cent  of  the 
total  area.  In  many  countries  of  Europe  all  available  land  is  cultivated. 
Even  in  the  United  States,  a  comparatively  new  country,  46  per  cent  of  the 
land  is  in  farms,  and  25  per  cent  of  the  land  is  improved.  In  Java  40  per 
cent  of  the  land  is  cultivated. 

220 


LAND  TEISTFRE  *  221 

often  are  not  directly  dependent  on  the  land  for  food.  How- 
ever, as  soon  as  a  man  brings  a  bit  of  land  into  cultivation, 
he  appropriates  it  for  himself.  Most  Negritos  observe  the 
right  of  the  cultivator  to  the  exclusive  use  of  the  land  he 
has  cleared,  and  some  even  place  a  value  on  such  land. 
Among  the  Subanuns  a  kaingin  is  owned  by  the  family  that 
has  cleared  it,  and  the  right  to  use  it  can  be  exchanged. 
Among  advanced  agricul-  — 

tural     peoples     improved  '^/' 

land    becomes    the    chief  /  WWMM^++V+x  > 

form     of     wealth.      Rice         /  Av+V+^!k 

/  /+  +  +  +  +  +  A 

terraces    compose    almost       /  /++++tv+"'"+V 

all    the     wealth    of    the      L, .,..,,,,,,,,,, ,,,,        /%+5>tv>!-^'^- 
mountain  peoples  of  Lu-      ^MmMm^^-     /%V.V/.V 

zon,  among  whom  private 
ownership     of     land     is    ^) 
recognized. 

The     areas     cultivated 
by  the  Filipinos  may  be 

considered  as  divided  into  r"-^ 

small  parcels,    parcels  of  virgin  forests L^^s^^ 

1  .     ■  .  1         1  SECOND-GROWTH  |+++++|l6V* 

medmm    size,    and    large  forests 1^  -^  +l 

parcels.     The  amount  of  grasslands ^H**^^ 

land   which   a   man  with  cultivated  lands... .dl^«^ 

one  work  animal  (carabao  chart  xxviii.  covering  of  the 
or    ox)    can    cultivate    is  Philippine  land  area 

about     one     hectare     (two  Estimates  of  Bureau  of  Forestry 

and  a  half  acres).  Any  plot  of  land  less  than  this  may  there- 
fore be  considered  a  small  parcel.  With  the  help  of  the  whole 
family  it  is  usually  possible  to  cultivate  a  larger  area  than 
this,  the  amount  varying  from  one  to  five  hectares,  accord- 
ing to  the  size  of  the  family.  Pieces  of  land  which  are  more 
than  five  hectares  in  area  are  nearly  always  worked  entirely 
or  in  part  by  persons  other  than  the  immediate  family  of  the 
owner.  Chart  XXIX  shows  graphically  the  portions  of  the 
Philippines  in  which  parcels  of  three  sizes  are  most  important. 


222  '  ECONOMIC  CONDITIONS 

It  should  be  understood  that  there  are  parcels  of  land  of 
all  sizes  everywhere  in  the  Philippines.  The  map  shows  only 
the  size  of  parcels  into  which  most  of  the  cultivated  land  of 
any  given  region  is  divided.  The  Philippine  census  of  1903 
states  that  about  half  the  parcels  of  occupied  land  are  less 
than  one  hectare  in  area,  and  that  a  fifth  of  these  are  less  than 
.01  hectare  (.025  acre).^  The  average  size  of  Philippine  farms 
is  given  in  the  census  as  3.5  hectares  (8.5  acres),  which  means 
that  parcels  of  less  than  one  hectare  predominate.  Those  of 
medium  size  (from  one  to  five  hectares)  are  next  in  impor- 
tance, while  of  the  larger  parcels  (of  more  than  two  hectares) 
there  are  comparatively  few.^ 

Most  of  the  land  in  the  province  of  Albay  is  in  holdings 
which  are  from  one  to  five  hectares  in  size.  This  province  can 
therefore  be  taken  as  typical  of  the  Philippines  in  general; 
the  following  figures,  compiled  by  J.  Q.  A.  Braden,  Provincial 
Treasurer,  show  the  averages  for  the  Islands : 

62.3%,    or  50,770  parcels,  contain  less  than  1  hectare       52.3% 
23.9  %,    or  23,201  parcels,  contain  1  hectare  but  less ' 

than  2  hectares 
10.55%,  or  10,242  parcels,  contain  2  hectares  but  less 
than  3  hectares 
8.2%,    or    7,960  parcels,  contain  3  hectares  but  less 

than  5  hectares 
3.5  %,    or    3,300  parcels,  contain  5  hectares  but  less  "1 

than  10  hectares  !►      5.05  % 

1.55  %,  or    1,602  parcels,  contain  ten  hectares  or  more  J 
100%  100% 

1  Since  the  Philippines  are  a  land  of  scattered  holdings,  the  small  plots 
mentioned  are  in  the  hands  of  a  smaller  number  of  owners  than  would  at 
first  be  thought.  The  question  of  the  distribution  of  land  among  the  people 
is  a  different  subject,  and  is  taken  up  under  the  heading  Systems  of  Cultiva- 
tion, on  page  226. 

2  It  will  be  noted  that  the  map  gives  these  data  with  reference  to  the  total 
area,  whereas  the  census  gives  them  in  percentages  of  the  total  number  of 
holdings.  Parcels  of  land  in  France  are  of  about  the  same  size  as  in  the 
Philippines.  In  the  United  States  the  average  size  of  farms  in  1910  was 
55  hectares  (138  acres),  and  the  average  amount  of  improved  land  in  it 
80  hectares  (75  acres). 


42.65% 


CHART  XXIX.    LAND  TENURE :    AREA  OP  CULTIVATED  PLOTS 


224  ECONOMIC  CONDITIONS 

Ilocos  Norte  may  be  taken  as  an  extreme  example  of  the 
predominance  of  small  holdings.  As  shown  by  the  records  of 
the  provincial  treasurer,  100,000  hectares  of  cultivated  land 
are  divided  into  200,000  parcels,  averagmg  a  half  hectare  each. 
On  the  other  hand,  in  parts  of  Negros  and  Iloilo  three  fourths 
of  the  land  is  hi  plots  of  more  than  ten  hectares  each. 

The  large  parcels  have  in  a  few  cases  been  handed  down 
intact  from  early  Philippine  times.  Many  are  the  whole  or 
parts  of  large  Spanish  land  grants  made  from  the  public 
domain.  Some  estates  have  been  formed  gradually  by  pur- 
chase of  contiguous  smaller  pieces.  A  few  have  more  than 
'1000  hectares  (2500  acres),  many  have  from  100  to  500 
hectares  (from  250  to  1250  acres),  while  most  have  less  than 
100  hectares.  In  none  of  the  larger  estates  is  the  whole  of 
the  arable  land  cultivated. 


FORMATION  OF  SMALL  AND  MEDIUM  PLOTS 

The  fields  of  medium  size  and  the  small  plots  are  the  result 
of  several  conditions : 

1.  The  method  of  lowland  rice  culture,  which  necessitates 
dividing  the  land  by  dikes,  results  in  small  plots.  Level  strips 
of  small  area,  but  of  varying  elevation,  are  made,  so  that 
water  from  the  canals  will  flow  from  the  higher  levels  to 
the  lower  levels. 

2.  When  land  was  plentiful,  and  was  owned  by  virtue  of 
tenancy  and  use  alone,  the  settler  cleared  and  claimed  only  as 
much  as  he  could  cultivate.  The  plots  are  of  medium  size. 
The  manner  in  which  the  Philippine  Islands  were  originally 
occupied  is  illustrated  by  the  procedure  of  Ilocano  immigrants 
in  settling  new  country.  They  come  in  groups  of  from  five 
to  twenty,  each  group  under  a  headman,  who  takes  possession 
of  a  certain  amount  of  public  land.  When  this  is  cleared  and 
put  in  a  state  suitable  for  cultivation,  it  is  divided  among 
the  immigrants  by  the  headman.  Often  several  families  who 
wish  to  migrate  intrust  their  savings  to  one  of  their  number, 
who  buys  land  for  their  new  homes.    This  land  is  distributed 


LAND  TENURE  225 

among  those  constituting  the  community,  but  the  title  remains 
in  the  name  of  the  headman. ^ 

3.  Large  parcels  of  land  have  been  broken  up  through  inher- 
itance. The  parents  apportion  them  among  the  children,  both 
male  and  female,  and  thus  after  several  generations  the  plots 
become  so  small  through  division  and  redivision  that  they  can-  • 
not  be  further  subdivided.  In  this  way  it  often  happens  that 
several  persons  will  own  an  undivided  interest  in  the  same 
plot.  In  the  more  densely  settled  portions  of  the  Ilocano  coun- 
try  it  is  almost  impossible  to  purchase  even  half  a  hectare  of  i 
land  that  is  not  owned  by  from  three  to  twelve  persons. 

4.  It  is  with  the  greatest  reluctance  that  the  average  Fili- 
pino parts  with  his  land  ;  but  sometimes  misfortune  or  need 
of  money,  occasioned  by  funeral,  marriage,  or  other  family 
event  of  importance,  compels  him  to  sell  or  mortgage  a  part 
of  it.  This  land  is  seldom  redeemed.  Sometimes,  induced 
by  high  prices  offered  by  the  tenants,  the  larger  holders  are 
persuaded  to  sell  small  pieces  of  their  land. 

The  feeling  which  prompts  the  tenant  to  buy  a  piece  of  land 
long  held  by  himself  or  family,  and  which  makes  the  owner  so 
loath  to  part  with  inherited  holdings,  accounts  for  the  persist- 
ence as  well  as  for  the  growth  of  small  plots.  The  property 
of  the  wife  is  kept  separate  from  that  of  the  husband.  Every 
parcel  is  divided  among  the  heirs.  Tuherited  property  is  so 
highly  prized  that  owners  do  not  care  to  sell  it,  even  at  three 
or  four  times  what  it  is  worth.  The  majority  of  landowners 
possess  more  than  one  small  plot ;  but  it  never  occurs  to  them 
to  sell  several  of  their  small  parcels  to  buy  adjacent  property, 
although  they  might  be  able  to  obtain  the  latter  at  from  one 
half  to  one  third  of  the  original  price.^ 

This  desire  for  land  (inborn,  and  the  result  of  an  aristocracy 
based  on  land  ownership)  is  even  now  causing  the  extension 
of  small  holdings  in  most  regions.  It  is  true  that  in  the  most 
backward  parts  of  the  Islands  the  attitude  of  the  people  is 

1  From  the  economic  report  of  Fred  O.  Freemyer,  Pangasinan. 

2  From  the  economic  report  for  Laguna  Province,  submitted  by  R.  G. 
McLeod,  Division  Superintendent. 


226  ECONOMIC  CONDITIONS 

such  that  the  condition  of  land  tenure  remains  unchanged. 
Moreover,  in  a  few  locaKties  where  large  parcels  predomi- 
nate, large  proprietors  are  increasing  their  holdings ;  they  buy 
those  of  the  younger  generation  who  prefer  to  sell  and  enter 
some  other  form  of  employment  than  agriculture,  and  those  of 
the  small  proprietors  who  get  into  financial  difficulties  through 
ignorance  or  inability  to  handle  their  own  affairs.  But  the  Fil- 
ipino share  tenants  are  ambitious  to  own  their  plots,  and  the 
small  proprietors  to  acquire  further  holdings.  In  most  cases 
they  fail  to  do  this  through  ignorance  and  inability  to  manage 
their  business ;  but  those  who  succeed  in  establishing  them- 
selves as  independent  landowners,  and  in  extending  their 
holdings,  are  constantly  increasing  the  number  of  small  plots. 
This  will  be  further  discussed  in  considering  the  share  tenant. 

Systems  of  Cultivation 

The  rights  of  a  person  in  a  piece  of  land  are  not  always 
complete,  and  may  change ;  customs,  inheritance,  law,  or  con- 
tract may  limit  them  to  a  term  of  years,  or  to  a  certain  amount 
of  the  product.  These  various  rights  will  be  best  understood 
by  a  discussion  of  the  systems  by  which  land  is  cultivated. 

The  large  parcels  in  the  Philippines  are  cultivated  by  pro- 
prietary, share,  or  rent  system.  The  small  parcels  may  be 
cultivated  by  the  peasant  proprietors  or  by  hired  labor,  or  may 
be  leased  for  a  definite  amount  of  money  or  of  product,  or  on  a 
share  of  the  crop. 

THE  PROPRIETARY  SYSTEM 

In  the  proprietary  system  the  owner  superintends  the  affairs 
of  his  estate  directly  or  through  managers.  The  laborers  work 
for  a  wage ;  they  are  supervised  in  small  groups  by  foremen. 

The  Sugar  Haciendas  of  Occidental  Negros 

The  sugar  haciendas  of  Occidental  Negros  offer  the  best 
example  of  the  proprietary  system,  and  will  be  discussed  here. 
There  are  about  four  hundred  sugar  haciendas  in  that  province, 


LAND  TENURE  227 

the  average  amount  of  land  cultivated  on  each  varying  from 
100  hectares  (250  acres)  in  some  parts  to  250  hectares  (625 
acres)  in  the  San  Carlos  district.  During  the  busy  season 
an  average  of  from  one  hundred  to  two  hundred  men  are 
employed.  Only  about  a  fourth  of  these  laborers  reside  per- 
manently on  the  plantation ;  about  three  fourths  of  them  are 
brought  in,  usually  under  contract,  from  the  island  of  Panay 
and  from  the  Bantayan  Islands  during  the  milling  season, 
which  extends  from  October  through  March. 

The  contract  which  the  laborer  makes  with  the  owner  or  his 
managers  is  usually  a  verbal  one,  to  work  at  a  certain  daily 
wage,  the  employer  furnishing  the  transportation  to  his  estate, 
and  advancing  money  to  pay  the  laborer's  indebtedness  at  his 
home  or  the  necessary  amount  for  the  support  of  his  family 
while  he  is  absent.  Sometimes  this  agreement  is  made  with 
a  foreman  who  has  taken  a  labor  contract  to  cut  and  haul  all 
the  cane  in  a  field.  In  any  case  the  men  work  in  squads  or 
groups  of  from  eight  to  thirty,  with  one  foreman  for  each 
group.  The  foreman  directs  and  disciplines  the  laborers,  but 
in  some  cases  questions  may  be  referred  to  the  overseers  or 
manager.  Families  often  accompany  the  married  men.  The 
women  and  children  do  the  lighter  work  about  the  farm  and 
may  even  clean  and  plant  the  cane  points. 

The  laborers  usually  live  in  villages  grouped  about  the 
owner's  house,  the  permanent  laborers  in  houses,  the  tempo- 
rary ones  often  in  barracklike  structures  which  may  be  rather 
crowded  during  the  milling  season.  Before  the  World  War 
the  wages  given  were  keep  and  money,  varying  from  PO.20 
to  P0.60  per  day,  according  to  the  locality  and  the  demand 
for  labor.  Since  laborers  seldom  work  continuously,  the  aver- 
age amount  earned  each  week  is  only  from  Pi  to  P2.  Most 
of  the  money  is  spent  in  gambling  at  cards  or  in  the  cockpit, 
and  some  goes  for  clothing,  food,  and  tuba ;  but  the  average 
workman  takes  part  of  his  wages  home  with  him.  The 
laborers  receive  food  from  the  manager  while  they  are  working. 
This  consists  of  a  ration  of  rice  or  corn  with  fish,  usually  dried ; 


228  ECONOMIC  CONDITIONS 

occasionally,  perhaps  once  a  week,  meat  is  included.  As  a  rule, 
the  permanent  laborers  are  better  housed  and  fed  than  the 
temporary  ones.  They  sometimes  have  garden  plots  and  a 
few  chickens  and  pigs. 

The  relation  between  planter  and  laborer  is  only  the  business 
one  of  employer  and  employee.  The  planter  tries  to  obtain 
the  greatest  possible  results.  Most  of  the  laborers,  however, 
are  drawn  from  the  class  which,  largely  from  ignorance,  de- 
sires to  work  as  little  as  possible  for  the  wage,  and  to  obtain 
as  many  advances  as  the  planter  can  be  persuaded  to  make. 

The  planter  is  expected  at  any  time  to  advance  money  to 
his  tenants  up  to  two  months'  wages,  to  furnish  medicine  and 
to  support  the  families  during  sickness,  to  get  them  out  of 
trouble,  to  settle  petty  disputes  and  quarrels,  and  to  give 
advice  and  counsel  on  all  subjects.  Custom  generally  con- 
cedes him  the  right  to  fine  his  men  when  necessary,  to  bring 
back  men  who  have  gone  away  owing  him  money,  and  to 
collect  from  the  children  the  debt  of  a  man  who  has  died. 
The  laborers  do  not  leave  for  any  action  on  the  part  of  the 
planter  if  they  think  it  just.  The  planter  is  deterred  from 
the  abuse  of  these  powers  by  fear  of  losing  his  laborers. 

The  difficulties  in  the  labor  situation  in  Negros  arise  chiefly 
because  the  laborers  belong  to  the  least  intelligent  classes  of 
the  Filipinos,  and  are  without  any  property  or  other  interests 
which  might  give  them  the  stability  found  among  most  Philip- 
pine agricultural  laboring  classes.  Most  of  them  are  recruited 
from  districts  where  sugar  growing  is  practically  unknown ; 
often  they  do  not  understand  even  the  first  rudiments  of 
agriculture.  The  cost  of  bringing  a  laborer  from  Panay  may 
amount  to  twenty  pesos.  If,  therefore,  he  works  only  a  part  of 
the  time  (he  usually  takes  many  intervals  of  rest)  this  amount 
of  capital  is  lying  idle.  After  pay  day  from  thirty  to  fifty 
per  cent  of  the  men  may  be  absent  from  work.  It  thus  becomes 
necessary  to  maintain  a  force  of  a  hundred  men  to  have  sixty 
working  every  day.  The  percentage  of  dishonest  persons 
among  the  laborers  is  large,  and  on  an  average  from  five  to  ten 


LAND  TENURE  229 

per  cent  break  their  contract,  and  leave  the  planter  with  only 
a  debt  in  his  possession.  A  planter  of  Negros  annually  loses 
in  this  manner  from  P50  to  P1500,  according  to  the  number 
of  men  employed;  in  some  districts  the  loss  amounts  to  ten 
per  cent  of  the  annual  expenditure  for  labor. 

However,  the  planters  also  are  to  blame  for  the  unfortu- 
nate situation.  Many  of  them  do  not  give  enough  personal 
attention  to  their  farms,  and  as  a  whole  they  are  making  little 
effort  to  better  the  condition  of  their  laborers.  There  is  lack 
of  cooperation  among  planters,  who  accept  as  laborers  men 
known  to  have  absconded  from  other  employers,  leaving 
their  debts  behind  them.  Then  there  has  been  little  attempt 
to  establish  labor  on  a  firmer  basis  by  increasing  the  number 
of  permanent  laborers,  by  providing  small  garden  plots,  and 
by  encouraging  education.  In  general,  planters  have  preferred 
to  keep  the  men  in  debt,  hoping  thus  to  retain  their  services, 
and  have  not  encouraged  independent  workers.  It  is  notice- 
able that  those  few  planters  who  provide  good  food  and 
shelter  for  their  laborers,  and  who  treat  them  well  and 
encourage  schools,  have  the  least  trouble  and  are  even  able 
to  obtain  locally  all  the  labor  necessary.  The  adoption  of 
modern  methods  permits  planters  to  keep  the  permanent 
laborers,  and  to  do  away  with  the  unsatisfactory  migratory 
seasonal  labor. ^ 

The  Proprietary  System  in  Other  Provinces 

The  haciendas  of  Oriental  Negros  are  similar  to  those  just 
discussed,  but  many  of  the  peasant  proprietors  (who  predom- 
inate in  that  province)  are  available  as  laborers  during  the 
rush  season.2 

The  proportion  of  permanent  laborers  on  the  sugar  hacien- 
das is  much  greater  in  Iloilo  than  in  Negros.    All  extra  labor 

1  Agricultural  labor  is  discussed  in  Chapter  XIII. 

2  Much  of  the  information  concerning  the  haciendas  of  Negros  was  de- 
rived from  the  reports  of  Eugene  H.  Rabun,  C.  A.  Harbaugh,  Martin  S.  Jones, 
and  Roscoe  L.  Hall,  supervising  teachers.  - 


230  ECONOMIC  CONDITIONS 

needed  during  the  milling  season  can  be  obtained  locally  in 
Iloilo,  and  the  labor  troubles  are  of  much  less  importance 
than  in  Negros. 

Rice,  corn,  abaca,  and  sugar  are  produced  on  the  haciendas 
of  Leyte.  Many  laborers  live  permanently  on  the  land ;  but 
a  large  number  are  brought  annually  from  Cebu.  Little  diffi- 
culty is  encountered  with  labor  by  planters  of  long  experience. 
Great  care  is  exercised  in  establishing  the  estates,  and  only 
good  workers  are  allowed  to  settle  on  the  farms,  those  who 
do  poorly  being  weeded  out.  However,  some  trouble  is  had 
with  transient  laborers  who  go  away  owing  money. 

The  abaca  haciendas  of  the  Bicol  Peninsula  are  worked  on 
a  somewhat  different  plan,  since  abaca  is  usually  stripped  on 
shares.  Most  of  the  laborers  live  permanently  on  the  haciendas, 
and  are  often  assigned  a  small  patch  of  ground  on  which  vege- 
tables, bananas,  and  the  like  can  be  grown.  Tenants  sometimes 
leave  the  haciendas  when  the  landlords  try  to  discourage  the 
maintenance  of  these  plots.  The  wage  of  a  laborer  stripping 
on  shares  varies,  according  to  the  amount  of  fiber  he  obtains 
and  the  market  price,  from  one  half  to  two  thirds.  In  some 
places  a  ration  valued  at  one  tenth  of  a  peso  for  every  arroba 
of  hemp  stripped  is  also  given.  The  laborer's  share  must  usu- 
ally be  sold  to  the  Owner  of  the  land.  Sometimes  the  owner 
furnishes  fiestas  during  the  year.  The  temporary  laborers  on 
an  abaca  plantation  are  few ;  they  are  often  better  off  than 
the  permanent  laborers,  since  they  have  small  parcels  of  their 
own.  The  foremen  have  the  general  supervision  of  the  strip- 
pers, weigh  the  abaca,  and  so  on.  The  laborer  must  often 
transport  the  clean  fiber  to  the  selling  place.  He  has  also  to 
cut  weeds  from  the  fields,  and  set  out  new  plants.  Laborers 
on  the  hacienda  of  Sorsogon  break  their  contracts,  but  to  a 
much  less  extent  than  in  the  Visayas.  Another  troublesome 
habit  of  the  laborers  is  stealing  and  selling  hemp.  There  is 
also  a  tendency  among  them  to  work  a  few  days  and  idle 
away  the  rest  of  the  time.  This  is  particularly  true  where  the 
people  are  not  interested  in  garden  plots  or  in  small  holdings. 


LAND  TENURE  231 

In  parts  of  the  Cagayan  Valley,  particularly  in  Isabela 
Province,  exists  a  mixed  form  of  the  proprietary  share  sys- 
tem. Tobacco  is  the  staple  crop.  The  laborers  are  assigned 
permanent  plots,  and  receive  two  thirds  of  the  crop.  In  ad- 
dition they  obtain  the  entire  product  of  the  cornfields ;  before 
the  World  War  they  received  from  P0.25  to  P0.40  a  day  for 
any  work  which  was  not  connected  with  their  crop.  They  are 
supervised  by  foremen,  and  usually  sell  their  share  to  the 
owner  of  the  land. 

Forms  of  the  proprietary  system  exist  in  other  provinces  also. 

New  Plantations 

Many  new  haciendas  have  lately  been  established  in  the 
Philippines  for  the  cultivation  of  abaca,  sugar,  rubber,  coco- 
nuts, pineapples,  and  other  crops.  About  the  Gulf  of  Davao 
are  several  abaca  plantations  which  are  cultivated  by  hired 
labor,  and  stripped  on  shares.  Most  of  the  labor  is  permanent, 
but  a  considerable  portion  is  floating.  The  largest  sugar  plan- 
tation in  the  Islands  is  that  in  Mindoro,  on  which  modern 
methods  are  employed.  The  laborers  have  been  brought  in 
and  settled  permanently  in  villages.  They  are  well  treated ; 
and  it  is  reported  that  little  difficulty  is  had  with  them.  On 
the  large  sugar  haciendas  now  established  in  Laguna  Prov- 
ince thirty-five  per  cent  of  the  laborers  live  permanently  on 
the  land ;  the  others  are  brought  in  from  the  surrounding  vil- 
Jages.  They  received,  before  the  World  War,  their  keep  and 
from  F0.50  to  F0.60  a  day.  In  general  the  new  plantations 
are  being  worked  on  the  proprietary  system,  with  labor  per- 
manently established  on  the  land. 

PEASANT  PROPRIETORS 

In  several  sections  of  the  Philippines  the  greater  part  of 
the  land  is  tilled  by  the  men  who  own  it.  Such  localities 
are,  first,  those  in  which  there  is  much  new  land,  or  in  which 
much  unoccupied   land   is  found,  such   as   Nueva  Vizcaya 


232  ECONOMIC  CONDITIONS 

Province,  parts  of  Isabela  and  Cagayan  provinces,  the  lumber- 
ing regions  of  Bataan  Province,  parts  of  Tayabas  Province, 
Butuan  and  Palawan  provinces,  and  parts  of  Mindanao ; 
secondly,  regions  long  settled,  in  which  the  cultivation 
of  the  land  by  peasant  proprietors  has  come  about  from 
the  wide  distribution  of  wealth,  such  as  parts  of  Tarlac, 
Pampanga,  Laguna,  Batangas,  Cavite,  and  Camarines  provin- 
ces, Albay,  Sorsogon,  and  Antique  provinces,  parts  of  Capiz 
and  Leyte  provinces.  Oriental  Negros,  Bohol,  and  Misamis 
provinces. 

There  are  other  regions  in  which  the  land  is  owned  by  the 
tillers  of  the  soil.  These  are  not  given  in  Chart  XXX,  but  a 
comparison  of  that  chart  with  Chart  XXIX  will  show  them. 
They  are  Ilocos  Norte,  Ilocos  Sur,  and  Pangasinan  provin- 
ces ;  much  of  Bulacan  and  Bataan  provinces ;  parts  of  Rizal, 
Cavite,  and  Batangas  provinces  ;  parts  of  the  Bicol  provinces ; 
and  parts  of  Cebu  and  Leyte  provinces.  In  these  regions  the 
interleasing  share  system  predominates  (page  256). 

In  all  parts  of  the  Islands  there  are  also  peasant  proprietors, 
who  own  and  till  a  greater  or  less  portion  of  the  land. 

The  number  of  plots,  their  size,  and  the  area  of  total  hold- 
ings of  the  peasant  proprietors  vary.  In  general  the  plots  of 
larger  size  occur  in  the  more  recently  settled  regions  or  in 
those  having  much  unoccupied  land.  In  such  districts  the 
cultivator  usually  owns  one  plot,  from  one  to  five  hectares 
(2.5  to  12.5  acres)  in  area,  according  to  the  requirements 
of  tobacco,  rice,  corn,  sugar,  coconuts,  and  abaca.  In  well- 
settled  regions  the  peasant  proprietor  often  owns  several  small 
plots,  sometimes  as  many  as  ten  or  more,  but  usually  about 
three.  The  total  area  of  these  may  be  considerably  less  than 
is  necessary  to  yield  the  proprietor  a  living,  in  which  case  he 
leases  more  land  on  shares ;  or  it  may  be  larger  than  he  can 
cultivate,  in  which  case  he  lets  other  persons  cultivate  some 
of  the  plots  on  shares.  Usually  the  plots  of  one  owner  are 
separated,  often  by  several  kilometers,  so  that  peasant  pro- 
prietors in  general  lose  much  time  in  going  to  and  from  their 


PHILIPPINE  I^ANDS 

LAND  TENURE 

SYSTEM  BY  WHICH  LARGEST 

PAKl  OF  THE  AREA 

rs  CULTIVATED  if. 

mH   Proprietary  •/ 

I j   Share 

^^^  Peasant  proprietary 

(Data  from  Economic  Reports, 
Bureau  of  Education) 


CHART  XXX.  LAND  TENURE  ;   SYSTEM  BY  WHICH  LARGEST  PART  OF 
DIFFERENT  AREAS  IS  CULTIVATED 


234  ECONOMIC  CONDITIONS 

fields ;  they  are  also  compelled  to  spend  a  great  deal  of  extra 
energy  in  keeping  each  of  their  little  plots  fenced,  watered, 
and  free  from  weeds. 

The  condition  of  the  Philippine  peasant  proprietor  is  better 
than  that  of  any  other  tiller  of  the  soil  in  the  Islands.  His 
position  is  more  stable ;  for  he  owns  property  which  protects 
his  creditors  from  loss.  He  is  not  often  an  habitual  gambler 
or  a  permanent  borrower.  His  intelligence  is  greater  than 
that  of  hired  or  share  laborers,  since  his  self-reliance  and 
initiative  are  more  developed.  His  income  is  greater  because 
he  obtains  the  total  crop  from  the  land  he  works.  The  total 
annual  income  of  peasant  proprietors  expressed  in  money  was 
estimated  by  the  economic  reports  at  from  ?100  to  P500 
with  the  average  about  P250.  Nearly  all  this  is  spent  for 
food,  clothing,  and  shelter.  In  some  places  the  remainder  is 
devoted  to  amusements  and  luxuries ;  in  others  it  is  habitually 
saved  by  the  peasant  proprietors.  The  Ilocanos  are  able  to 
save  from  five  to  ten  per  cent  of  their  annual  income ;  they 
invest  their  savings  either  by  purchasing  work  animals  to 
cultivate  their  land  or  by  purchasing  land  to  increase  their 
present  holdings. 

The  income  of  the  peasant  proprietor  is  seldom  wholly  de- 
rived from  agriculture.  During  the  off  season  he  may  find 
employment  on  a  neighboring  hacienda,  harvesting  sugar, 
stripping  abaca,  or  working  in  the  coconut  groves.  At  the 
time  of  harvesting  rice  he  and  his  family  may  reap  rice  on 
shares.  He  may  be  a  porter,  driver,  fisherman,  lumberman, 
or  wandering  merchant.  Often  the  women  of  the  household 
greatly  increase  the  family  income  by  keeping  small  shops, 
by  weaving  cloths,  hats,  mats,  baskets,  slippers,  and  the  like, 
or  by  making  pottery,  embroidery,  and  other  products  in  the 
home.  Some  of  these  products  of  their  industry  find  a  ready 
domestic  use  within  the  household;  but  most  of  them  are 
sent  to  the  market.^ 

1  For  a  discussion  of  the  relation  between  agriculture  and  household 
manufacture,  see  Chapter  XVII. 


LAND  TENURE  235 

Small  Owners  who  cultivate  their  Plots  with  Hired  Lahor^  or 
who  rent  them 

In  most  parts  of  the  Philippines  few  or  no  owners  of  small 
plots  cultivate  them  with  hired  labor;  in  the  Visayas,  how- 
ever, there  are  regions  in  which  that  system  is  common. 
Several  thousand  plots  are  cultivated  by  hired  labor  on 
Panay,  Negros,  Samar,  Leyte,  and  Cebu  islands.  In  Tayabas 
Province  and  the  Bicol  Peninsula  hired  labor  is  employed  on 
small  coconut  and  abaca  holdings.  Small  owners  frequently 
rent  their  plots  to  cultivators. 

Small  owners  usually  interest  themselves  in  remunerative 
occupations.  Those  who  retain  a  few  of  their  fields  often 
work  harder  and  cultivate  them  better  than  their  tenants. 
Some  occupy  government  positions  or  are  employees  of  large 
companies ;  some  are  fishermen ;  some  interest  themselves  in 
commerce,  and  become  storekeepers  or  wandering  merchants ; 
some  are  day  laborers,  especially  on  public  works ;  others  are 
carpenters  or  barbers  ;  many  are  teachers  ;  among  the  Ilocanos 
and  in  Capiz  Province  and  elsewhere  they  often  devote  them- 
selves entirely  to  handicraft  work  in  the  homes.  However, 
some  small  owners  are  satisfied  with  the  meager  income  they 
obtain  by  renting  their  plots  or  by  working  them  with  hired 
labor,  and  set  themselves  up  as  petty  landlords.  In  a  few 
regions  these  men  and  the  small  owners  who  lease  their  land 
on  shares  constitute  a  large  idle  population. 

THE  RENT  SYSTEM 

In  the  proprietary  and  peasant  proprietary  systems  the 
owners  till  the  soil  or  supervise  the  work,  and  are  the  only 
persons  directly  interested  in  the  crop.  They  have  the 
whole  right  to  the  use  of  the  soil,  since  they  own  the  land 
in  fee  simple. 

Sometimes  cultivators  obtain  a  temporary  right  to  the  total 
product  of  the  land  by  paying  a  stipulated  sum  of  money  or 
amount  of  product ;  that  is,  they  rent  the  land  outright.    This 


236  ECONOMIC  CONDITIONS 

system  is  one  much  practiced  in  Europe  and  the  United  States. 
In  the  PhiHppines  it  is  employed  to  no  great  extent,  although 
it  is  growing  in  favor  in  certain  districts.^ 

In  most  provinces  land  is  rented  directly  to  the  cultivator 
at  prices  ranging  from  three  to  twenty  pesos  a  hectare  for 
rice  soils.  In  Isabela  Province  tobacco  land  rents  for  from 
thirty-five  to  a  hundred  pesos  a  hectare,  according  to  the  fer- 
tility of  the  soil  and  the  number  of  carabaos  included.^  The 
payment  of  a  definite  amount  of  palay  at  harvest  time  is  an 
even  more  common  form  of  rental,  and  ranges  from  one  to 
twelve  cavans  of  palay  a  hectare  (or  the  same  numbers  of 
cavans  for  every  cavan  planted).  The  amount  of  rent 
depends  on  the  fertility  of  the  soil  and  the  nearness  to  the 
village  or  town ;  it  is  usually  one  third  of  the  crop.  The 
renter  furnishes  his  own  carabao.  The  rental  system  is  found 
in  Isabela  Province,  in  the  Central  Plain  of  Luzon,  and  in 
Zambales,  Rizal,  Laguna,  Batangas,  Mindoro,Panay,  and  Leyte 
provinces.  In  Zambales  rent  in  kind  is  the  system  most  used, 
but  the  form  of  control  by  the  landlord  approaches  that  of 
the  kasama  system.  In  parts  of  Bulacan  as  much  as  fifty  per 
cent,  and  in  Rizal  Province  in  the  zacate  fields  near  Manila 
twenty-five  per  cent,  of  tlie  land  is  rented  outright.^  In  La- 
guna it  is  known  as  the  Busian  system.^  In  this  system  the 
rent  is  a  fixed  charge  against  the  renter.  If  the  crop  fails, 
he  is  usually  given  possession  of  the  land  for  another  year,  so 
that  he  may  pay  off  the  debt  to  the  landlord.  In  Zambales  ad- 
vances of  palay  and  money  at  high  rates  of  interest  are  made, 
as  in  the  kasama  system. 

1  In  Pampanga  the  large  landowners  rent  tracts  of  considerable  area  to 
tenants,  who  in  turn  become  landlords  by  subleasing  the  parcel  to  other 
tenants.  The  rent  in  this  case  is  usually  money.  (From  the  economic  report 
submitted  by  Mrs.  Lois  Stewart  Osborn.)  In  Iloilo  the  sugar  land  is  some- 
times rented  for  cash  at  approximately  eight  pesos  a  hectare,  this  rental  in- 
cluding the  use  of  the  mill  and  all  the  buildings  on  the  land.  Such  large 
rented  areas  are  worked  by  either  the  proprietary  or  the  share  system. 

2  Reports  of  Walter  K.  Ferret  and  Horatio  Smith. 
8  From  economic  report  of  Fred  T.  Lawrence. 

*  Reports  of  M.  M.  Boney  and  R.  G.  McLeod. 


LAND  TENURE  237 


SHARE  SYSTEMS 


In  the  three  systems  just  described  the  possessor  of  the 
land  is  the  only  person  directly  interested  in  the  amount  of 
the  crop.  A  large  part  of  the  cultivated  area  of  the  Philip- 
pines is  leased  on  shares,  by  an  arrangement  in  which  the 
owner  of  the  land  and  the  tiller  of  the  soil  are  different  per- 
sons, but  both  are  directly  interested  in  the  amount  of  the 
crop.  In  some  regions  and  under  certain  circumstances  the 
share  tenants  are  comparatively  free  in  action ;  in  others 
they  are  to  a  greater  or  less  extent  under  the  direction  and 
supervision  of  the  landlord,  not  only  in  matters  pertaining  to 
the  tilling  of  the  soil,  but  in  family  and  everyday  affairs. 

The  Manorial  System 

The  manorial  system  approaches  that  which  existed  in 
Europe  at  the  time  of  the  Spanish  conquest  of  the  Philippines. 

We  can  best  understand  the  mediaeval  manor  by  picturing  to  our- 
selves the  economic  life  of  a  v^^hole  village  as  a  unit  with  the  manor 
house  its  central  point.^ 

The  whole  of  the  cultivated  land  then  fell  into  two  species  :  demesne 
land,  land  cultivated  entirely  for  the  benefit  of  the  lord,  which  might 
consist  of  a  separate  enclosed  portion,  or  of  holdings  scattered  among 
the  holdings  of  the  villagers,  or  both ;  and  land  held  in  villeinage,  that 
is,  land  held  from  the  lord  by  his  tenants,  who  were  unfree,  and  were 
bound  to  pay  certain  services  to  the  lord.  The  amount  of  land  owned 
by  each  tenant,  and  the  services  due  to  the  lord,  depended  on  his  status. 
Two  main  classes  can  be  distinguished :  the  ordinary  holding  was  a 
virgate  or  yardland,  usually  thirty  acres  (12  hectares),  held  in  scattered 
strips ;  the  holder  of  a  virgate  was  called  a  villein.  Next  came  the 
bordars  or  cotters,  the  general  size  of  whose  holding  was  one  or  two 
acres  (|  to  |  hectare)  though  it  sometimes  rose  to  five  acres  (2  hectares) 
or  more.  These  did  not  possess  either  oxen  or  a  plough,  and  were  in  a 
decidedly  lower  position  than  the  villeins.  Both  villeins  and  cotters 
were  unfree,  but  their  position  was  not  that  of  slaves ;  a  slave  is  bound 
to  his  master ;  his  servitude  is  personal,  he  is  destitute  of  rights,  he  may 
be  called  on  to  do  anything.  .  .  .    But  the  villeins  and  cotters  were 

1  Buecher's  ''Industrial  Evolution,"  p.  103. 


238  ECONOMIC  CONDITIONS 

territorial  serfs,  bound  to  the  land  to  perform  certain  fixed  services, 
and  they  were  not  destitute  of  rights,  in  general  opinion  at  any  rate ; 
how  far  these  rights  could  be  enforced  by  law  was  another  matter. 

Services  were  paid  in  labor  on  the  lord's  demesne,  and  out  of  the 
very  great  variety  of  them  two  main  classes  emerge :  "  week  work," 
that  is,  labor  for  certain  days  a  week  regularly  all  the  year  round,  vil- 
leins generally  giving  three  days'  work  and  cotters  two ;  and  "  boon 
work,"  extra  labor  in  addition  to  the  week  work  at  times  of  the  year 
when  there  was  special  need  for  it ;  such  boon  work  would  be  demanded 
at  harvest,  haymaking,  and  ploughing.  In  addition  to  week  work  and 
boon  work  there  were  often  small  tributes  or  payments  in  kind ;  fowls 
and  eggs,  bushels  of  oats,  and  so  forth;  and  the  villagers  had  to  do 
what  cartage  the  lord  required.  These  duties  discharged,  the  tenant 
had  the  rest  of  his  time  to  work  on  his  own  holding. 

It  is  evident  that  the  principal  task  in  managing  an  estate  was  to 
see  that  the  villeins  and  other  tenants  paid  their  services  duly,  and  to 
superintend  them  at  their  work.  Such  work  when  ill  looked  after  would 
tend  to  be  little,  for  the  laborer  had  no  inducement  to  work  hard,  and 
in  the  case  of  the  boon  work,  the  villein  had  every  incentive  to  evade 
or  put  off  fulfillment  of  his  duty.  .  .  .  Whether  an  estate  was  valuable 
or  not  mainly  depended  on  the  amount  of  labor  available.  Fertility 
would  be  undeveloped,  size  would  merely  prove  cumbrous,  if  there  was 
a  want  of  labor.  There  was  no  class  of  laborers  who  could  be  hired ;  a 
lord  must  depend  on  the  services  of  his  tenants.  Thus  pains  were  taken 
to  keep  up  the  labor  on  an  estate.  It  was,  generally  speaking,  impossible 
for  a  man  on  it  to  leave  it ;  heavy  fines  were  asked  before  permission 
was  given.  New  holdings  could  easily  be  bestowed  out  of  the  waste,  or 
existing  ones  divided  if  more  land  was  required.  But  above  all,  when  the 
aim  of  good  management  was  that  each  manor  should  be  self-sufficing, 
that  the  customary  labor  should  be  enough  and  no  money  disbursed  to 
hire  more,  it  was  important  to  have  an  exact  account  of  the  labor  on 
each  estate.    To  know  this  was  to  know  the  value  of  the  manor.^ 

The  manorial  system  is  most  closely  approached  in  parts  of 
Mindanao.  There  the  tenant  has  the  use  of  a  certain  piece  of 
land  allotted  to  him  by  the  owner.  The  product  of  the  land 
is  his  own,  to  do  with  as  he  likes.  No  rent  is  paid,  but  the 
tenant  is  obliged  to  work  for  the  landlord  a  certain  part  of 
the  time,  for  which  he  receives  wages.  It  is  the  custom  for 
the  tenant  to  work  every  second  week  for  the  landlord.   If  the 

1  George  Townsend  Warner's  "  Landmarks  in  English  Industrial  History." 


LAND  TENURE  239 

two  have  a  disagreement,  the  landlord  must  purchase  whatever 
permanent  crops  the  tenant  may  have  planted,  before  the  latter 
leaves.^  There  are  isolated  cases  of  the  landlord's  receiving 
the  entire  crop  from  a  certain  part  of  the  land  cultivated  by 
the  tenant,  the  latter  taking  the  crop  from  the  remainder. 

On  certain  haciendas  on  Negros  Island  part  of  the  land  is 
tilled  by  share  tenants,  who  often  have  to  work  two  days  a 
week  (dagyao)  for  the  landlord.  Formerly  this  service  was  given 
without  extra  compensation,  but  now  daily  wages  are  paid.^ 

The  Kasama  Share  System 

The  two  methods  above  are  local  in  occurrence.  In  most 
cases  land  is  leased  on  a  share  of  the  crop.  The  regions  in 
which  the  greatest  area  of  the  land  is  worked  by  share  systems 
is  shown  on  Chart  XXX.  In  general  the  relation  of  the  tenant 
to  the  landlord  and  the  conditions  of  both  have  brought  about 
share  systems  of  three  kinds : 

1.  Large  haciendas  cultivated  on  the  share  system:  the 
kasama,  kanan,  or  inquilino  system. 

2.  A  large  number  of  scattered  plots  owned  by  one  person 
and  leased  to  tenants :  the  scattered-holdings  system. 

3.  Leasing  and  re-leasing  by  peasant  proprietors :  the  in- 
terleasing  system. 

The  kasama  system  is  found  on  nearly  all  the  large  hold- 
ings in  the  Central  Plain  of  Luzon,  in  Zambales,  and  in  the 
Cagayan  Valley  (see  Charts  XXIX  and  XXX).  It  is  also 
found  to  some  extent  in  most  other  parts  of  the  Islands. 

The  owner  of  a  large  share  estate  may  or  may  not  give 
personal  attention  to  his  land.  He  either  lives  on  the  farm 
and  closely  supervises  the  tenants,  or  he  lives  in  town  and 
interests  himself  in  other  things.  In  the  latter  case  he  may 
have  a  manager,  who  is  to  be  considered  the  landlord  in  this 
discussion,  or  his  tenants  may  take  care  of  themselves  in  a 

1  From  the  report  of  M.  A.  Maxey,  Baganga  District,  More. 

2  From  the  report  of  H.  E.  Carmichael. 


240  ECONOMIC  CONDITIONS 

disorganized  manner.    It  is  only  the  supervised,  or  organized, 
estates  that  will  be  taken  up  for  discussion. 

On  most  of  the  organized  haciendas  worked  on  the  share  sys- 
tem the  landlord  has  a  considerable  amount  of  jurisdiction  over 
the  affairs  of  the  tenant.  He  determines  the  crop  to  be  planted, 
the  time  of  planting  and  harvesting,  and  such  matters  as 
pertain  directly  to  the  cultivation  of  the  plot  assigned  to  the 
tenant.  The  relation  between  landlord  and  tenant  in  private 
affairs  depends  largely  on  the  custom  of  the  community,  the 
character  of  the  individual  landlord,  and  the  class  to  which 
the  tenant  belongs.  The  more  closely  the  tenant  resembles 
the  laborer  described  in  the  proprietary  system,  the  greater 
is  the  control  of  the  landlord  over  his  actions.  In  the  kasama 
system  as  it  exists  in  the  Central  Plain  of  Luzon  the  land- 
lord exercises  his  control  most  effectively,  and  the  tenant  is 
correspondingly  dependent. 

A  Typical  Kasama  System.^  The  owner  furnishes  the  tenant  with 
land,  a  carabao,  and  seed,  the  product  of  the  crop  to  be  equally  divided 
between  them  after  deducting  the  seed.  Upon  delivery  to  the  tenant  of 
the  animal  he  takes  "  bugnos,"  advance  money.  This  varies  from  P15 
to  P  70  and  forms  a  retainer,  as  it  were,  until  the  owner  sees  fit  to  re- 
lease him  and  his  family.  The  money  itself  he  generally  spends  for  his 
womenkind,  and  the  remainder  at  the  cockpit,  which  is  his  natural  de- 
pravity, but  his  only  pleasure  in  a  life  of  hopeless  drudgery.  Naturally, 
as  he  lives  from  hand  to  mouth,  he  is  without  resources,  except  cooking 
pots,  a  mat  or  so,  and  a  few  clothes.  At  the  end  of  the  week,  usually 
on  Sunday,  he  draws  a  ration  of  palay  from  the  owner,  which  varies, 
though  usually  a  half  cavan  a  week  is  sufficient  for  his  family.  This 
amount  he  pays  back  in  kind  with  no  increase,  upon  gathering  his  crop. 
But  all  other  supplies  of  money  that  are  generally  drawn  from  time  to 
time  from  the  owner  are  paid  for  in  "  takalanan  " ;  that  is,  at  the  end 
of  the  season  the  tenant  repays  the  landlord  in  palay  at  less  than  mar- 
ket value,  say  at  from  P0.50  to  P0.75  a  cavan,  a  gain  to  the  owner  of 
from  150  to  200  per  cent. 

1  This  is  an  extract  from  an  unpublished  report,  "  Circle  for  the  Study  of 
Social  and  Economic  Conditions  in  the  Philippines,"  a  synopsis  of  notes  on 
the  kasama  system  as  found  in  Nueva  Ecija,  by  Percy  A.  Hill,  issued  by  the 
Committee  on  the  Prosecution  of  Investigation  and  Publication,  Manila,  1909. 
Mr.  Hill  is  a  planter  in  Nueva  J^cija. 


LAND  TENURE  241 

When  the  land,  for  the  proper  and  timely  preparation  of  which  the 
tenant  is  held  rigidly  responsible,  is  once  prepared,  the  seed  rice  or  other 
crop  is  distributed  in  the  fields  awaiting  transplanting.  This  part  of 
the  work  is  sometimes  paid  in  total  by  the  owner,  the  tenant  doing  the 
harvesting  at  his  own  expense ;  but  the  general  custom  is  for  the  owner 
and  the  tenant  to  pay  halves,  the  tenant  naturally  taking  the  money  from 
the  owner,  paying  the  same  rate  of  interest  as  the  "  takalanan,"  which 
swells  his  debt.  The  planters  receive  commonly  from  P0.15  to  P0.25  a 
day  with  rations,  and  if  the  tenant  has  in  his  family  anybody  who  can 
plant  rice,  he  naturally  reduces  the  price  of  his  share  of  the  planting. 

The  crop  once  planted,  the  ration  of  palay  is  usually  discontinued ; 
but  the  family  has  to  exist,  and  so  a  new  schedule  is  put  into  force,  that 
of  "  terkiaan,"  50  per  cent  increase,  or  "takipan,"  100  per  cent  increase, 
so  that  if  a  tenant  receives  5  cavans  between  planting  and  harvest  he 
must  pay  back  7^  cavans  if  "terkiaan,"  or  10  cavans  if  "takipan."  After 
stacking  in  February,  threshing  commences,  usually  with  carabao  or 
cattle.  The  winnowing  of  the  grain  is  generally  done  by  the  tenant's 
womenkind,  who  receive  four  per  cent  for  their  work.  The  crop  is  now 
ready  for  division ;  first  the  seed  is  deducted  and  the  crop  is  halved ; 
out  of  the  tenant's  half  is  deducted  for  the  owner  his  total  amount  taken 
in  rations,  his  "  takalanan  "  and  "  takipan."  Generally  all  he  has  left  is 
an  increased  debt  and  the  four  per  cent  received  by  the  women  for  win- 
nowing ;  however,  he  manages  to  exist  until  the  cropping  commences 
again,  when  he  resumes  his  ration  and  debt. 

On  large  farms  and  haciendas  years  often  pass  without  a  "  patuid," 
or  settlement,  and  the  tenant  never  knows  whether  he  owes  P50or  PlOO; 
thus,  practically  not  only  his  work  is  demanded,  but  that  of  his  wife  and 
children,  until  they  are  old  enough  to  enter  as  tenants,  or  until  death 
passes  the  debt  on  to  the  younger  generation.  Their  lives  are  a  con- 
tinual round  of  work  and  drudgery,  the  owner  generally  finding  some- 
thing to  be  done  at  all  times. 

The  tenant's  food  consists  of  rice  and  vegetables,  which  he  raises 
himself,  generally  camotes,  corn,  beans,  and  greens,  varied  by  fish 
caught  in  the  rice  fields  during  the  wet  months,  and  by  an  occasional 
piece  of  meat.  On  this  meager  diet  he  works  day  in  and  day  out,  his 
only  pleasure  being  tobacco  and  an  occasional  drink  of  "bino."  As  a 
rule,  he  uses  two  suits  of  clothes  and  one  hat  a  year,  a  total  value  of 
about  P  5.  A  large  family  usually  swells  the  debt.  If  he  gets  despond- 
ent, he  has  his  former  owner  transfer  him  and  his  debt  to  another.  He 
owns  no  land,  nor  property,  as  a  rule,  and  his  house  is  a  *'  cubo  "  or  hut 
of  light  materials,  put  together  in  two  or  three  days.  Of  course  his  con- 
dition often  varies.  An  old  "  kasama  "  often  lives  as  well  and  as  con- 
tent as  the  owner,  and  at  the  present  time  an  increasing  number  are 


242  ECONOMIC  CONDITIONS 

acquiring  animals  of  their  own  and  hunting  up  homesteads  or  leased 
lands,  but  many  who  obtain  an  animal  fall  into  debt  again. 

The  average  charges  against  a  tenant  and  family  of  three  persons, 
estimated  from  observation  and  experience,  are  as  follows : 

Plow,  and  other  implements    ....        3.50  cavans  of  palay 

Eation,  ^  cavan  weekly,  May  1  to  Sep- 
tember 30 10.00  cavans  of  palay 

Supplies,tobacco,  sa!t,  etc 6.00  cavans  of  palay 

Money  received  at  P0.50  per  cavan, 
P  12.00  (used  for  oil,  meat,  clothes, 
matches,  etc.) 24.00  cavans  of  palay 

Terkiaan,  October  1  to  November  15, 

3  cavans 4.50  cavans  of  palay 

48.00  cavans 

"  Bugnos  "  (advance  money)    ....    P20.00 

A  good  average  crop  for  a  tenant  is  100  cavans ;  his  share  of  one  half 
(50  cavans)  less  48  cavans  leaves  him  2  cavans  to  pay  on  interest  of  the 
^■20  advance  money.  Therefore  as  a  rule  PlOO  is  sufficient  to  support 
a  family  of  three  for  a  year,  with  palay  at  P2  per  cavan.  If  corn,  beans, 
or  peas  are  raised,  one  half  goes  to  the  owner  after  the  deduction  of  the 
seed,  but  only  a  small  amount  of  secondary  crop  is  grown. 

The  owner  exercises  a  power  over  the  tenant  that  would  be  difficult 
to  define.  He  is  consulted  on  all  affairs  of  ways  and  means  and  even 
marriage,  absence  from  the  land,  use  of  animals,  extra  day  or  night 
work.  In  petty  lawsuits  the  tenant  must  obtain  permission  to  partici- 
pate ;  otherwise  he  pays  for  loss  of  time  at  an  enormous  rate. 

The  dense  ignorance  of  the  tenant  often  leads  him  to  be  imposed 
on  by  his  more  astute  fellows  and  landlords,  but  on  the  other  hand  he 
exasperatingly  celebrates  every  fiesta  in  the  calendar,  and  without  care- 
ful watching  will  lose  in  a  month  by  carelessness  the  crop  it  took  him 
six  months  to  produce.  Yet  he  cheerfully  submits  to  working  out  debts 
which  are  sometimes  held  only  by  verbal  promises,  often  over  a  period 
of  years;  and  once  out  of  debt,  he  usually  manages  to  fall  in  again 
before  he  realizes  it.  It  is  to  the  natural  advantage  of  the  owners  to 
secure  and  keep  the  tenants  in  a  constant  state  of  debt. 

In  general,  conditions  on  large  estates  worked  by  the  share 
system  approach  those  just  described. 

Number  of  plots  leased.  The  amount  of  rice,  tobacco,  or 
corn  land  leased  to  the  tenant  in  an  organized-share  hacienda 
varies  with  the  locality,  and  particularly  with  the  richness  of 
the  soil,  but  is  usually  one  or  two  hectares.    The  amount  of 


PHILIPPINE  ISLANDS 

Resrions  in  which  most 
Agrricullural  Labocera 

TM]   Own  their  work  animala 

MilJ  (Peasant  proprietors  and  share  tenants) 

^M   Do  not  own  their  work  animals 
(Share  tenants  and  hired  laborers) 

(Data  from  Economio  Reports^ 
Bureau  of.  Education) 


"^ 


Eormosa 


CHART  XXXI 


244  ECONOMIC  CONDITIONS 

land  given  a  tenant  for  sugar  and  abaca  plantations  is  larger 
than  for  tobacco  or  rice,  and  varies  from  two  to  five  hectares 
in  plots  separated  or  contiguous.  It  is  seldom  that  more  than 
one  plot  is  leased,  although  on  an  hacienda  where  both  rice  and 
corn  are  grown,  a  tenant  may  have  one  lowland  and  one  high- 
land plot.  When  the  landlord  has  lands  both  for  rice  and  for 
corn  or  tobacco,  two  plots  are  sometimes  taken,  since  these 
crops  are  grown  at  different  periods  of  the  year.  A  house 
plot  in  the  village  either  goes  with  the  leasehold  or  is  rented 
at  a  small  sum  by  the  year. 

Permanency  of  tenants.  The  agreement  between  tenant 
and  landlord  is  sometimes,  but  not  generally,  written,  and  is 
most  often  for  one  season.  Usually  it  is  indefinite  in  nature. 
If  the  landlord  is  kind,  and  the  tenant  efficient,  the  lease 
continues.  If  the  tenant  does  not  please  the  landlord,  he  is 
ejected ;  if  in  turn  he  is  not  pleased,  he  may  leave.  In  some 
places  there  are  landlords  who  cannot  get  tenants  in  the  local- 
ity, but  have  to  go  to  other  towns  each  year  to  secure  them. 

Division  of  the  crop.  The  share  of  the  crop  credited  to  each 
of  the  three  factors  which  produce  it  varies  according  to  the 
custom  of  the  locality,  the  fertility  of  the  soil,  the  proximity  to 
the  town  or  market,  and  a  variety  of  other  conditions.  How- 
ever, the  apportionment  is  usually  based  on  a  valuation  of 
one  third  for  the  labor,  one  third  for  the  work  animal,  and 
one  third  for  the  improved  land.  The  division  of  crop  there- 
fore depends  on  who  owns  the  carabao.  If  the  tenant  pos- 
sesses a  carabao,  he  gets  two  tliirds  of  the  rice  crop,  and  the 
landlord  one  third ;  in  other  cases  the  owner  usually  gets 
two  thirds,  and  the  tenant  one  third.  It  seldom  happens  on 
a  large  share  estate  that  a  third  person  owns  the  work  animal. 
On  Chart  XXXI  it  will  be  seen  that  most  of  the  tenants  on 
estates  in  the  Cagayan  Valley  and  in  Zambales  Province  own 
their  animals,  whereas  those  on  estates  in  the  western  part 
of  the  Central  Plain  of  Luzon  do  not.  In  the  Visayas  most 
tenants  on  large  share  estates  are  furnished  with  animals  by 
the  owners.    In  some  places  tenants  harvest  and  thresh  the 


LAND  TENURE  245 

crop ;  in  others  this  is  done  for  a  separate  consideration ; 
additional  harvesters  are  often  employed  on  shares. 

There  are  many  variations  in  this  general  division  of  the 
crop,  all  of  which  cannot  be  given  here  ;  the  most  important, 
however,  deserve  mention.  When  the  rice  land  is  exceedingly 
fertile,  the  owner  may  receive  one  half  the  crop  instead  of  one 
third  ;  if  it  is  not  very  fertile,  or  is  far  from  the  village  (as 
upland  fields),  his  share  may  be  only  one  fourth,  or  even  less. 
In  Occidental  Negros  the  landlord  furnishes  land,  seed,  and 
animal.  The  lessee  does  the  work  until  harvest.  One  eighth 
of  the  crop  is  given  to  the  harvesters;  two  thirds  of  the  re- 
mainder goes  to  the  landlord,  and  one  third  to  the  lessee.  If 
the  former  furnishes  the  land  only,  he  receives  but  one  third. 
In  some  places  an  exact  division  of  the  crop  is  made  under  the 
first  arrangement.  In  Bataan  Province  the  landlord  plants  the 
crop,  advances  thirty  pesos  a  hectare  without  interest,  and  cuts 
the  crop.  The  tenant  does  all  the  other  work,  gathers  the 
crop  after  it  has  been  cut,  and  delivers  the  landlord's  share 
at  his  home.  In  this  case  the  crop  is  divided  into  two  equal 
parts.  If  the  landlord  furnishes  the  land,  carabao,  and  seed, 
and  pays  for  extra  labor  in  transplanting,  he  receives  three 
fifths,  the  harvesters  one  fifth,  and  the  tenant  one  fifth. 

In  Bataan  the  landlord  on  a  sugar  estate  furnishes  seed, 
fencing,  and  milling,  and  feeds  the  mill  laborers.  The  tenant 
of  a  small  plot  does  the  planting  and  cultivating,  feeds  and 
pays  extra  field  laborers,  hauls  the  cane  to  the  mill  and  sugar 
to  the  market,  and  receives  half  the  product.  If  a  third  man 
is  the  owner  of  the  mill,  he  furnishes  the  necessary  labor  for 
his  mill,  and  the  sugar  produced  is  divided  equally  among  the 
landlord,  the  tenant,  and  himself.^ 

1  In  parts  of  Negros  fully  sixty  per  cent  of  the  hacienda  owners  have  men 
renting  sugar  lands  from  them  under  the  parcero  system.  The  parcero  owns 
from  one  to  twenty-five  carabaos,  and  leases  approximately  two  hectares  of 
land  for  each  work  animal.  He  furnishes  animals,  labor,  and  field  machinery, 
but  is  often  financed  by  the  planter,  who  lends  him  money  at  fifteen  per  cent 
interest,  with  his  work  animal  and  standing  crop  as  security.  The  harvested 
cane  is  turned  over  to  the  planter,  who  takes  fifty  per  cent  of  it  as  rent  for 


246  ECONOMIC  CONDITIONS 

On  abaca  plantations  the  division  is  one  third  or  one  half 
unless  the  price  of  the  fiber  is  low,  and  then  the  laborer  ob- 
tains the  greater  share.  It  should  be  noted,  however,  that  the 
third  factor,  the  animal,  does  not  enter  into  the  production  of 
abaca.  Neither  is  the  animal  considered  on  a  coconut  planta- 
tion. In  Laguna  Province  the  tenant  takes  care  of  the  grove, 
keeps  out  beetles,  reports  damage,  and  collects  the  nuts  for 
counting.  A  number  of  nuts  sufficient  to  pay  the  cost  of  pick- 
ing and  transporting  are  taken  by  the  owner,  and  the  tenant 
receives  one  fifth  of  the  remainder.  In  southern  Luzon,  and 
on  the  Visayan  Islands,  half  the  copra  is  given  to  the  tenant 
when  he  does  the  work  outlined  above  and  also  prepares  and 
dries  the  meat.  In  Tayabas  the  landlord  gets  two  thirds  of 
the  copra,  but  has  to  build  and  maintain  the  drying  kiln,  and 
to  provide  the  tenant  with  a  house  in  the  village. 

Usually  a  part  of  the  natural  increase  of  domestic  animals 
placed  in  the  tenant's  care  becomes  his  property.  By  this 
custom  a  tenant  frequently  obtains  a  carabao,  which  advances 
his  economic  condition  considerably. 

Mutual  rights  and  duties  of  landlord  and  tenant  The  mutual 
rights  and  duties  of  landlord  and  tenant  differ  in  various  parts 
of  the  Islands.  The  tendency  is  to  relieve  the  tenant  of  all 
duties  except  those  directly  connected  with  the  piece  of  land 
leased.  In  most  regions,  however,  it  is  still  customary  for  the 
landlord  to  call  on  the  tenant  for  group  labor  at  harvest  time, 
to  repair  and  build  houses,  fences,  ditches,  mills,  and  the  like, 
and  to  get  wood  and  run  errands.  The  custom  of  making 
small  presents  of  farm  or  handicraft  products  to  the  landlord 
is  still  practiced  by  the  tenant  in  some  places,  but  is  rap- 
idly disappearing.  No  wages  are  paid  for  extra  work  unless  it 
is  of  long  duration,  and  then  a  money  wage  is  often  given. 

the  land.  The  planter  also  charges  two  pesos  for  each  picul  of  the  parcero's 
sugar  for  grinding  the  cane  and  boiling  and  transporting  the  sugar  to  Iloilo. 
When  the  whole  hacienda  is  leased,  the  lessee  does  all  the  work  and  turns 
half  the  sugar  over  to  the  owner  of  the  land  and  mill.  In  this  form  of  lease 
the  land  is  not  worked  by  the  parcero  himself,  but  is  cultivated  according 
to  the  proprietary  system. 


LAND  TENURE  247 

Otherwise  a  gift  from  the  landlord,  and,  in  case  of  group  work, 
a  fiesta  are  supposed  to  recompense  the  tenant.  The  tenant's 
family,  however,  nearly  always  receives  a  daily  wage  when 
working  for  the  landlord.  The  more  services  the  tenant  ren- 
ders the  landlord,  the  more  likely  he  is  to  receive  substan- 
tial advances  of  food  and  money,  and  the  more  lenient  is  the 
landlord's  treatment  of  him.  Formerly  the  tenant  had  to  supply 
the  landlord  with  wood,  but  this  duty  is  now  required  in  but 
few  regions ;  he  also  threshed  his  rice,  but  with  the  introduc- 
tion of  threshing  machines  such  duties  are  constantly  growing 
less  numerous. 

The  landlord  may  provide  a  tenant  with  a  fiesta  for  a  variety 
of  reasons.  He  generally  does  this  when  he  is  the  beneficiary 
of  group  labor.  Sometimes  he  gives  a  fiesta  at  a  stated  period  ; 
for  instance,  after  the  harvest,  or,  less  frequently,  after  plant- 
ing. He  often  supplies  music  or  other  amusements  at  the 
yearly  village  fiesta. 

Control  of  landlord  over  tenant.  The  control  which  the  land- 
lord exercises  over  the  private  affairs  of  the  tenant  varies 
greatly  in  different  parts  of  the  Islands.  He  usually  defends 
him  in  court  and  against  other  persons  in  matters  that 
pertain  solely  to  the  crop,  and  often  looks  after  his  private 
interests  before  the  law.  He  does  this  to  keep  the  tenant 
contented,  so  that  he  will  remain  on  the  estate.  The  tenant 
is  to  a  large  extent  dependent  on  the  landlord,  and  looks  on 
him  as  his  leader  and  director  in  times  of  emergency.  The 
landlord  arbitrates  the  tenant's  quarrels  and  gives  him  advice 
and  the  benefit  of  his  close  supervision. 

An  important  consideration  in  the  share  system,  partic- 
ularly on  rice  haciendas,  is  the  question  of  advances  and 
interests.  Conditions  in  Nueva  Ecija  have  already  been 
quoted.  For  the  Islands  as  a  whole,  interest  on  such  advances 
ranges  from  fifty  to  five  hundred  per  cent  a  year.  When 
a  debt  is  paid  in  kind,  the  landlord  often  takes  produce  at 
a  lower  rate  than  the  market  price  ;  for  instance,  ?0.50  a 
pavan  below  the  market  price  for  palay  when  it  is  selling  at 


// 


248  ECONOMIC  CONDITIONS 

from  Pi. 75  to  P2.25  a  cavan.  The  landlord  makes  a  further 
profit  by  holding  the  rice  until  July  or  August,  when  the 
price  rises  to  P2.25  or  P2.75.  At  this  time  the  tenant  fre- 
quently buys  back  at  an  advanced  price  the  same  amount  of 
palay  that  he  parted  with  at  the  end  of  the  harvest,  thus 
contracting  another  debt  which  must  be  paid  at  the  next 
harvest,  and  so  on  from  year  to  year.  Most  advances  are 
paid  in  kind.  In  sugar,  too,  the  landlord  buys  the  tenant's 
share  at  a  low  market  price,  and  holds  it  for  a  higher  price, 
often  making  a  large  profit. 

It  is  through  advances,  interest,  and  debt  that  the  planter 
often  controls  the  actions  of  the  tenant  and  holds  him  to 
the  landT^Serfdom  for  debt  was  an  ancient  institution  in  the 
Philippines ;  to-day  the  Filipinos  feel  that  honor  compels  the 
payment  of  a  debt  as  soon  as  possible,  and  that  a  debt  of  a  father 
attaches  itself  to  the  succeeding  generation.  An  ignorant 
tenant,  therefore,  considers  himself  legally  bound  to  the  land- 
lord by  debt ;  in  any  case,  he  feels  in  honor  bound  to  repay  his 
debt  as  best  he  can.  Hence  it  is  that  a  tenant  thrown  out  of  a 
share  estate  because  of  his  refusal  to  pay  such  a  debt  loses 
his  reputation  not  only  with  the  landlord  but  with  the 
tenant  class.  By  the  law  of  custom  he  becomes  an  outcast. 
The  ejected  tenant,  who  has  broken  his  contract  or  refused 
to  cultivate  the  land,  must  usually  leave  the  district.  The 
landlord  thus  feels  it  to  be  to  his  interest  to  keep  the  tenant 
in  debt ;  since  he  charges  a  high  rate  of  interest  on  advances, 
he  usually  manages  to  keep  the  tenant's  share  covered.  A 
tenant  is  thereby  virtually  working  for  his  keep  and  a  little 
spending  money.  Occasionally  there  is  a  landlord  who 
encourages  the  tenant. to  get  out  of  debt  and  acquire  work 
animals  and  land,  but  he  is  the  exception ;  sometimes  there 
is  a  landlord  who  refuses  to  accept  the  payment  of  a  debt, 
for  the  sake  of  keeping  the  tenant  on  the  land. 

In  the  most  backward  parts  of  the  Islands  the  landlord 
has  practically  the  control  of  the  tenant;  but  the  more 
enlightened  the   community,  the  less   is   the   power  of  the 


LAND  TENURE  249 

landlord.  Where  labor  is  scarce  and  there  is  a  considerable 
amount  of  wealth  generally  distributed,  the  balance  of  power 
may  be  in  the  hands  of  the  laborers. 

The  landlord  on  a  large  organized  share  estate  determines 
the  kind  and  amount  of  crop  to  be  planted,  and  the  time  of 
planting  and  harvesting.  The  tenant  must  obtain  permission 
to  raise  crops  other  than  that  so  determined,  to  raise  stock 
for  his  personal  use,  and,  if  in  debt  to  the  landlord,  to  sell 
his  portion  of  the  crop.  The  tenant  nearly  always  carries  out 
the  orders  of  the  landlord  with  respect  to  the  tilling  of  the 
soil.  Cases  are  known,  however,  where  the  tenant  did  not 
cultivate  all  the  land  he  leased,  and  consequently  the  crop 
was  smaller  than  it  should  have  been  ;  but  the  landlord 
claimed  and  received  as  his  share  the  amount  of  palay  which 
1^  would  have  obtained  had  all  the  land  been  cultivated. 
Sickness,  however,  is  usually  considered  an  acceptable  reason 
for  the  production  of  a  partial  crop. 

As  previously  stated,  the  tenant  for  the  most  part  remains 
permanently  on  the  farm.  Sometimes  another  person  who 
wants  the  tenant  will  persuade  him  to  change,  and  will 
advance  the  money  to  pay  off  his  debt  to  the  landlord,  thus 
assuming  the  debt.  When  the  landlord  is  dissatisfied,  he 
may  tell  the  tenant  to  get  the  necessary  money  to  pay  his 
debt,  in  which  case  the  tenant  finds  another  landlord  to 
assume  it.  When  the  landlord  sells  his  land,  his  rights  in  the 
debt  of  the  tenant  are  sold  with  it.  In  a  few  cases  a  tenant 
will  leave  the  landlord  when  in  debt  to  him.  Here  the  latter 
has  no  recourse,  though  sometimes  custom  obliges  any  land- 
holder who  accepts  a  tenant  to  assume  his  debt  to  the  former 
landlord.  In  case  of  the  death  of  the  tenant  his  children 
usually  assume  the  debt.  If  they  are  old  enough,  they  work 
it  out  on  the  land ;  young  children  often  come  to  serve  in 
the  house  of  the  landlord  at  a  stated  wage  until  the  debt  is 
paid.  This  is  the  foundation  of  the  bonded  debtor  system 
discussed  in  Chapter  XIII.  It  is  seldom  that  the  children 
repudiate  the  debt  of  their  father ;  the  unity  of  the  Fihpino 


250  ECOKOMIO  COKDITIOKS 

family  is  close ;  moreover,  failure  to  assume  such  a  debt  might 
result  in  the  children's  being  ostracized  by  their  associates. 

In  most  cases  where  the  tenant  is  mistreated  by  the  land- 
lord he  simply  leaves  the  estate.  Both  tenant  and  landlord 
have  the  right  to  take  any  matters  involving  breach  of  con- 
tract, mistreatment,  or  injustice  to  the  courts,  but  neither 
often  avails  himself  of  this  privilege.  However,  instances 
seem  to  be  multiplying,  since  the  tenant  is  beginning  to 
understand  his  rights  before  the  law. 

The  ownership  of  a  work  animal  or  of  a  small  plot  of 
land,  or  of  both,  gives  greater  stability  to  the  tenant,  secures 
him  better  treatment  and  terms  from  the  landlord,  and  is 
more  satisfactory  to  the  landlord.  Sometimes  the  tenant 
gives  the  landlord  a  guaranty  of  some  sort ;  this  may  be  a 
title  to  a  small  plot  of  ground,  or  another  person  may  stand 
responsible  for  his  debt.  In  some  places  legal  contracts  are 
made,  and  debt  or  damages  due  the  landlord  can  be  obtained 
from  the  sale  of  the  tenant's  property.  Such  a  tenant  at  will 
is,  of  course,  much  better  off  and  much  more  independent 
than  those  previously  described. 

Income  of  tenant.  The  income  of  the  tenant  on  a  large 
share  hacienda  before  the  World  War  varied  from  P80  to 
P200  ;  the  average  was  probably  PlOO.  In  general,  a  tenant 
of  this  class  saves  but  little ;  most  of  his  income  is  expended 
for  food,  a  little  for  clothing  and  luxuries,  and  the  remainder 
in  gambling.  The  largest  income  is,  of  course,  obtained  by 
the  tenant  owning  a  carabao. 

Summary.  In  general  the  relationship  of  father  and  child 
may  describe  the  attitude  of  landlord  and  tenant  to  each  other. 
The  landlord  is  paternal,  the  tenant  filial.  Nevertheless  each 
looks  out  for  his  own  interest;  the  landlord  tries  to  get  as 
much  out  of  the  tenant  as  he  can,  and  to  keep  him  indebted 
and  contented,  so  that  he  will  not  go  away;  the  tenant 
obtains  as  many  advances  as  he  can,  and  works  as  little  as 
possible.  The  landlord  regards  the  tenant  as  a  natural  and 
easy  means  of  getting  his  land  worked.    The  tenant  looks 


LAND  TENURE  251 

on  the  landlord  as  a  business  benefactor.  Their  condition 
and  the  real  feeling  of  each  to  the  other  depend  on  the  dis- 
position and  the  enlightenment  of  the  landlord,  and  the  state 
of  ignorance  of  the  tenant  and  his  willingness  to  work.  In 
most  cases  the  tenant  must  depend  on  the  landlord.  Often 
he  is  unable  to  plan  his  career  alone,  and  looks  to  the  land- 
lord for  direction  in  the  most  trivial  matters.  The  latter 
usually  encourages  this  dependence,  and  stands  in  a  paternal 
attitude  toward  the  tenant.  The  tenant  generally  respects 
and  loves  the  landlord ;  the  landlord  is  godfather  to  his 
children  ;  perhaps  the  landlord's  father  was  the  tenant's  god- 
father. The  landlord  appreciates  the  work  of  a  good  tenant, 
and  encourages  him  to  increase  his  output.  At  times  an 
unscrupulous  landlord  may  overburden  his  tenant,  or  even 
require  services  which  he  has  no  right  to  demand.  On  the 
other  hand,  the  tenant,  if  left  to  himself,  neglects  his  duties 
and  often  causes  the  landlord  much  inconvenience.  The  land- 
lord is  not  always  gently  paternal,  but  may  be  domineering, 
arrogant,  and  selfish ;  the  tenant  is  often  so  extremely  igno- 
rant, lazy,  shiftless,  and  fickle  that  it  is  impossible  to  utilize 
him  as  a  producing  agent  unless  some  system  of  compulsion 
is  maintained. 

In  the  more  advanced  regions  of  the  Philippines  the  tenant 
is  beginning  to  learn  something  of  his  personal  legal  rights 
in  his  relations  with  his  landlord.  The  landlord  who  has 
been  somewhat  overbearing  in  the  past  is  being  deserted. 
The  confidential  relation  is  in  some  cases  becoming  less 
close ;  in  a  few  regions  a  considerable  amount  of  trouble  is 
experienced  with  the  tenant  who  leaves  without  making  a 
settlement. 

Share  System  of  Scattered  Holdings 

The  share  system  of  scattered  holdings  is  found  in  those 
regions  in  which  all  or  part  of  the  land  is  divided  into  small 
and  medium-sized  parcels.  Such  holdings  do  not  permit  of 
the  hacienda  system  (either  proprietary  or  share)  even  when 


252  ECONOMIC  CONDITIONS 

owned  by  a  few  rich  families.  Leo  J.  Grove,  Supervising 
Teacher,  has  estimated  that  the  total  cultivated  area  of 
Camiling,  in  Tarlac  Province,  is  about  16,000  hectares, 
divided  into  15,000  parcels.  By  subtracting  a  third  of  the 
parcels,  and  a  thousand  hectares  allowed  for  building  lots, 
we  shall  see  that  the  average  parcel  is  about  one  and  a 
half  hectares.  About  half  of  these  parcels  are  owned  by 
people  who  have  from  five  to  thirty  scattered  plots,  and  do 
not  work  their  own  land. 

Where  such  holdings  exist,  it  is  a  common  practice  of  the 
tenant  to  take  more  than  one  plot ;  these  plots  are  as  a  rule 
widely  separated.  They  aggregate  in  area  the  amount  of 
land  ordinarily  leased  by  a  tenant  under  the  kasama  system. 
The  tenant  tries  to  get  adjacent  plots,  but  on  account  of  the 
peculiar  method  by  which  these  are  owned  (explained  under 
the  heading  Size  of  Parcels,  page  220)  it  is  not  often  that 
such  plots  are  available.  For  instance,  in  the  coast  towns  of 
Albay  it  is  rather  common  for  a  tenant  to  rent  one  plot  on 
the  mainland  and  one  on  an  adjacent  island.  The  owners 
of  parcels  of  land  which  are  not  large  enough  to  support  the 
family  often  cultivate  other  plots  on  shares. 

The  systems  of  division  of  the  crop  are  much  the  same  as 
those  discussed  under  the  kasama  system.  However,  a  few 
others  exist.  Sometimes,  as  often  occurs  in  Samar,  the  work 
animal  is  owned  by  a  third  person,  who  receives  one  third 
of  the  crop.  On  the  small  sugar  plots  where  the  landlord 
provides  a  primitive  mill  the  tenant  usually  gets  two  thirds 
of  the  sugar  produced,  but  furnishes  all  the  labor.  In  the 
production  of  abaca  the  landlord  sometimes  pays  a  premium 
over  the  usual  share  if  the  tenant  materially  improves  the 
production.  In  the  cultivation  of  intensive  crops  which 
require  no  animal,  such  as  betel  in  Pasay  near  Manila,  the 
crop  is  equally  divided  between  landlord  and  tenant.  Some- 
times the  owner  of  a  small  piece  of  land  borrows  money  on 
it,  and  gives  the  lender  full  possession  and  rights  to  its  use 
until  this  is  returned.    The  interest  takes  the  form  of  the 


LAND  TENURE  253 

product  of  the  land;  it  may  net  the  lender  from  forty  to 
eighty  per  cent.  The  owner  gets  back  the  land  whenever 
the  money  is  returned.  In  the  usual  contract  for  sale  a 
time  is  set  when  the  borrower  loses  the  land  if  the  money 
is  not  returned.  In  the  system  noted  above,  however,  the 
contract  extends  indefinitely. 

Under  this  system  the  tenant  often  brings  virgin  land 
under  cultivation  on  condition  that  he  have  the  use  of  the 
land  for  a  period  of  years,  or  receive  a  portion  of  it,  cleared 
and  planted,  as  his  own.  On  coconut  lands  in  Oriental 
Negros  the  tenant  sometimes  receives  all  that  he  can  raise 
between  the  palms  he  sets  out.  He  must  care  for  the  young 
trees,  and  when  they  are  too  old  to  permit  cultivation 
between  them,  he  receives  from  one  tenth  to  two  tenths  of  a 
peso  for  each  of  them.  In  Cavite  he  is  given  a  fourth  of  the 
land,  having  cultivated  between  the  trees  for  four  or  five 
years.  In  Mindoro  and  other  places  where  land  is  plentiful 
the  tenant  receives  half  the  land.  In  Sorsogon  the  tenant 
clears  the  forest,  plants  a  garden  plot  with  corn  and  sweet 
potatoes  for  himself,  and  sets  out  abaca  for  the  landlord.  In 
three  years  the  abaca  is  ready  to  strip.  From  the  first  three 
strippings  the  tenant  receives  the  entire  product ;  then,  about 
four  and  a  half  years  after  the  planting,  the  ordinary  division 
is  made.  When  the  tenant  clears  rice  land,  constructs  the 
necessary  irrigation  canals,  and  brings  the  plots  into  cultiva- 
tion, he  receives  as  payment,  in  Pangasinan  Province,  the 
crop  for  from  one  to  five  years;  in  Sorsogon,  the  crop  for 
about  three  years. ^ 

^  These  are  excellent  examples  of  rent  in  the  economic  sense  of  the  word. 
The  rent  for  the  productive  powers  of  rice  land  in  Sorsogon  Province  is,  for 
each  crop,  one  third  of  the  labor  of  clearing  the  land,  of  draining  it,  and  of 
diking  it,  ^'aboroniand'^^  -pj^^  word  "  rent"  has  two  meanings,  one  popular, 
the  other  scientific.  Thus  far  it  has  been  used  in  the  popular  sense,  and  refers 
to  the  sum  paid  for  the  use  of  the  productive  powers  of  the  land  as  well  as 
of  the  improvements  thereon,  such  as  fences,  irrigation  ditches,  freedom 
from  stones,  and  the  like.  The  rent  for  a  given  plot  of  land  increases  with 
the  value  of  these  improvements,  and  decreases  with  the  exhaustion  of  the 
soil  (productive  powers).   The  scientific  meaning  of  the  word  is  limited  to 


254  ECONOMIC  CONDITIONS 

The  services  which  the  tenant  performs  for  the  landlord 
in  the  system  of  scattered  holdings  are  much  fewer  than 
those  in  the  kasama  system.  The  custom  of  requiring  services 
is  fast  passing  away.  In  general,  too,  the  condition  of  the 
tenant  is  much  better  under  this  regime  than  under  the 
kasama  system.  The  tenant  often  possesses  one  or  more 
carabaos  or  is  the  owner  of  small  plots  of  land ;  the  landlord 
can  obtain  from  the  sale  of  these  any  sums  due  him.    Indeed, 


a  consideration  of  the  productive  powers  of  the  land ;  in  the  following 
discussion  of  the  law  of  rent  (taken  from  Laughlin's  "  Elements  of  Political 
Economy  ")  it  should  be  so  understood  : 

"Lands  are  of  varying  degrees  of  productiveness.  They  vary  not  only 
in  their  power  of  producing  different  articles,  such,  for  example,  as  wheat 
and  tobacco,  but  they  do  not  all  produce  the  same  thing  equally  well.  .  .  . 
The  slope,  drainage,  constituents  of  the  soil,  vary  from  field  to  field  even  in 
the  same  farm,  so  that  some  lands  afford  a  large  return  to  labor  and  capital, 
while  others  do  not ;  the  former  are  superior,  and  the  latter  are  inferior 
soils  as  regards  fertility. 

"Two  pieces  of  land,  which  are  of  equal  fertility,  as  regards  their 
natural  productiveness,  might  also  be  so  affected  by  situation  that  one  would 
be  classed  as  superior  and  the  other  as  inferior.  Suppose  that  one  piece.  A, 
were  situated  near  a  railway  station,  and  another,  B,  twenty-five  miles 
away  from  any  market,  and  that  each  parcel  of  land  produced  one  hundred 
bushels  of  wheat.  In  the  case  of  B  the  value  of  ten  bushels  might  be  spent 
in  carrying  the  produce  to  the  station  near  which  A  was  situated.  The 
farmer  of  B  would  be  no  better  off  than  if  he  cultivated  land  close  by  A 
which  produced  but  ninety  bushels.  The  cost  of  transportation  enters  into 
the  outlay  of  producing  wheat  on  B,  so  that  although  equal  in  natural  pro- 
ductiveness, B  is  really  inferior  to  A  by  situation ;  consequently  we  may 
speak  of  superior  and  inferior  lands,  although  this  difference  of  grades  may 
be  due  solely  to  situation.  .  .  . 

"  When  different  grades  of  land  are  in  cultivation  at  the  same  time  (pro- 
ducing the  same  article),  the  cultivator  of  the  richer  soil  receiving  the  same 
price  per  bushel  as  the  cultivator  of  the  poorer  soil,  the  former  will  get  more 
for  his  work  .  .  .  than  the  latter.  The  same  labor  .  .  .  produces  on  the  rich 
land  more  bushels  per  acre  than  it  does  on  the  poorer  land  ;  and  as  the 
price  at  which  each  bushel  is  sold  is  the  same,  the  return  to  the  former  .  .  . 
is  greater  than  the  return  to  the  latter  .  .  .  although  they  are  equal  in  both 
cases.  This  surplus  of  the  value  of  the  product  of  the  richer  over  the  poorer 
land,  when  both  are  needed  for  cultivation,  is  rent ;  and  the  whole  of  it 
goes,  under  free  competition,  to  the  landlord  or  owner  of  the  land. 

"This  law  accounts  for  the  range  of  rents  per  hectare  mentioned  under 
the  Rent  System,  and  also  for  the  varying  parts  of  the  crop  which  are  given 
the  landlord  in  the  share  system." 


LAND  TENURE  255 

in  some  localities  the  landlord  will  seldom  advance  much 
money  unless  the  tenant  owns  some  property. 

The  financial  and  general  condition  of  the  tenant  under 
this  system  is  much  better  than  on  the  large  estate.  His  in- 
come before  the  World  War  varied  from  Pi 00  to  P400,  and 
averaged  probably  P200.  He  obtains  an  additional  income 
from  other  sources  than  the  plot  he  rents,  just  as  a  peasant 
proprietor  obtains  an  additional  income.  The  following  is  an 
estimated  income :  - 

Farminy 

Rice PlOO 

Sugar 100 

Mango  trees 20      P220 

Fishing 10 

Wages  as  carpenter 25 

Earnings  of  wife  and  daughter  as  hat  or 

mat  weavers,  etc 25 

P280 

In  general,  it  may  be  stated  that  since,  under  this  system, 
the  holdings  and  tenants  are  scattered,  the  landlord  cannot 
exercise  the  same  control  over  his  tenants  as  he  does  in  the 
kasama  system.  Moreover,  the  tenants  usually  belong  to  a 
more  intelligent  class  of  laborers,  and  in  the  majority  of 
cases  own  work  animals  and  often  small  plots  of  ground. 
These  give  stability  and  a  sense  of  responsibility  not  pos- 
sessed by  the  tenants  on  the  large  hacienda.  Landlord  and 
tenants  usually  get  along  well,  the  landlord  looking  on  his 
tenants  as  poor  relatives  (which  they  often  are)  for  whom 
he  is  somewhat  responsible,  and  being  recognized  by  them  as 
a  superior  personage.  Sometimes  the  tenants  are  independent 
of  the  landlord  except  in  matters  directly  concerned  with 
the  soil. 

It  is  evident,  therefore,  that  the  tenant  under  this  system  is 
in  a  much  better  condition  than  the  tenant  under  the  kasama 
system.  His  income  is  greater,  and  he  is  much  more  independ- 
ent of  the  landlord.    Indeed,  he  may  rent  from  two  landlords. 


258  ECONOMIC  CONDITIONS 

enough  money  through  outside  work  and  through  household 
industries  to  purchase  a  carabao  and  even  the  land  on  which 
they  live  (see  Household  or  Domestic  Manufacture,  page  365). 
In  Laguna  Province  the  landlord  often  furnishes  the  land 
and  seed,  and  sells  carabaos  to  the  tenants  on  credit  without 
interest,  although  if  payment  is  made  in  produce  there  is  the 
usual  discrepancy  between  the  market  price  and  the  price 
credited  to  the  tenants. 

Throughout  the  Islands  the  larger  number  of  tenants  who 
attempt  to  provide  themselves  with  carabaos  and  land  fail. 
As  soon  as  they  become  independent  and  are  deprived  of  the 
benefit  of  supervision  by  the  landlord,  they  relapse  into  indo- 
lence, devote  themselves  to  gambling,  or  commit  indiscretions, 
and  soon  lose  their  possessions.  Their  inability  to  manage 
their  own  affairs  is  against  them.  Often  their  attempt  is  pre- 
mature, because  they  have  to  borrow  money  to  pay  for  the 
animal  or  land,  and  the  high  rate  of  interest  charged  on  sums 
borrowed  soon  results  in  the  loss  of  animal  and  holdings. 
Sometimes  the  former  tenant  and  his  family  will  get  along 
well  until  death  or  marriage  occasions  a  fiesta,  at  which  time 
all  accumulation  and  possessions  are  spent. 

In  spite  of  these  conditions,  however,  the  peasant  proprie- 
tors are  almost  everywhere  increasing  in  relative  importance, 
especially  since  the  economic  development  of  the  Philippines 
has  brought  with  it  higher  wages  and  ability  to  save  for 
investment. 

Condition  of  the  Classes  of  Cultivators 

It  would  appear  that  the  greater  the  percentage  of  large 
holdings  in  a  town,  the  poorer  is  the  condition  of  the  laboring 
class.  The  hired  laborer  and  the  poorer  tenant  are  illiterate ; 
their  knowledge  seldom  extends  outside  the  hacienda;  they 
have  no  initiative  or  idea  of  responsibility;  their  attitude 
toward  the  landlord  is  subservient ;  they  lack  stability ;  they 
are  poorly  clothed,  fed,  and  housed,  and  simply  exist.  The 
public  schools  have  not  drawn  so  large  a  proportion  of  pupils 


LAND  TENUKE  259 

from  this  class  as  from  other  laboring  classes.  More  farm 
work  is  expected  of  the  children,  and  they  are  not  encouraged 
to  go  to  school. 

Tenants  as  a  class  are  usually  poor,  but  their  livelihood  is 
assured ;  their  food,  housing,  and  clothing  are  better  than 
those  of  hired  laborers ;  they  are  usually  ignorant,  and  in  debt 
on  account  of  the  high  rate  of  interest,  but  they  receive  the 
protection  and  advice  of  the  landlord.  Their  assumption  of 
responsibility  is.  greater  than  that  of  hired  laborers,  and  as  a 
class  they  accumulate  more.  Even  if  he  owns  nothing,  the 
tenant's  interest  in  a  share  of  the  crop  gives  him  a  certain 
stability,  and  it  is  only  where  this  is  taken  away  (by  action  of 
the  landlord,  who  appropriates  all  the  crop  above  the  bare 
necessities  and  holds  the  tenant  in  debt)  that  he  is  reduced 
to  the  condition  of  the  day  laborer.  The  income  of  the  tenant 
having  a  carabao  or  land  is  larger  than  that  of  the  simple 
tenant;  his  position  is  the  most  stable  of  the  tenant  classes. 

In  the  most  backward  regions  of  the  Philippines  the  peas- 
ant proprietor  classes  are  very  ignorant,  and  often  not  very 
industrious.  Sometimes  they  are  really  tenants  on  share,  since 
their  land  is  controlled,  through  debt,  by  the  landlord  class. 
Such  proprietors  are  little  better  than  the  average  tenants  on 
share,  if  indeed  they  are  as  well  off. 

If  possessed  of  a  false  pride  on  account  of  ownership  of 
land,  the  peasant  proprietor  has  no  inclination  to  exert  him- 
self, and  does  not  supplement  his  income  with  the  proceeds 
of  outside  labor.  The  difference  in  the  individuality  of  peasant 
proprietors  is  especially  noticeable  when  industrious  peoples 
like  Boholanos  or  Ilocanos  settle  among  an  indolent  population. 

The  peasant  proprietor  usually  has  some  education  ;  he  can 
get  money  at  a  lower  rate  of  interest  (though  still  usurious) 
than  the  tenant ;  he  builds  a  better  house  and  has  better  food 
and  clothing ;  he  usually  prides  himself  on  the  ownership  of 
animals,  a  granary  of  palay,  rice,  or  corn,  and  a  small  amount 
of  land ;  he  is  anxious  to  give  his  children  the  advantages  of 
education;   and  his  social  pleasures  are  much  greater  than 


258  ECONOMIC  CONDITIONS 

enough  money  through  outside  work  and  through  household 
industries  to  purchase  a  carabao  and  even  the  land  on  which 
they  live  (see  Household  or  Domestic  Manufacture,  page  365). 
In  Laguna  Province  the  landlord  often  furnishes  the  land 
and  seed,  and  sells  carabaos  to  the  tenants  on  credit  without 
interest,  although  if  payment  is  made  in  produce  there  is  the 
usual  discrepancy  between  the  market  price  and  the  price 
credited  to  the  tenants. 

Throughout  the  Islands  the  larger  number  of  tenants  who 
attempt  to  provide  themselves  with  carabaos  and  land  fail. 
As  soon  as  they  become  independent  and  are  deprived  of  the 
benefit  of  supervision  by  the  landlord,  they  relapse  into  indo- 
lence, devote  themselves  to  gambling,  or  commit  indiscretions, 
and  soon  lose  their  possessions.  Their  inability  to  manage 
their  own  affairs  is  against  them.  Often  their  attempt  is  pre- 
mature, because  they  have  to  borrow  money  to  pay  for  the 
animal  or  land,  and  the  high  rate  of  interest  charged  on  sums 
borrowed  soon  results  in  the  loss  of  animal  and  holdings. 
Sometimes  the  former  tenant  and  his  family  will  get  along 
well  until  death  or  marriage  occasions  a  fiesta,  at  which  time 
all  accumulation  and  possessions  are  spent. 

In  spite  of  these  conditions,  however,  the  peasant  proprie- 
tors are  almost  everywhere  increasing  in  relative  importance, 
especially  since  the  economic  development  of  the  Philippines 
has  brought  with  it  higher  wages  and  ability  to  save  for 
investment. 

Condition  of  the  Classes  of  Cultivators 

It  would  appear  that  the  greater  the  percentage  of  large 
holdings  in  a  town,  the  poorer  is  the  condition  of  the  laboring 
class.  The  hired  laborer  and  the  poorer  tenant  are  illiterate ; 
their  knowledge  seldom  extends  outside  the  hacienda;  they 
have  no  initiative  or  idea  of  responsibility;  their  attitude 
toward  the  landlord  is  subservient ;  they  lack  stability ;  they 
are  poorly  clothed,  fed,  and  housed,  and  simply  exist.  The 
public  schools  have  not  drawn  so  large  a  proportion  of  pupils 


LAND  TENURE  259 

from  this  class  as  from  other  laboring  classes.  More  farm 
work  is  expected  of  the  children,  and  they  are  not  encouraged 
to  go  to  school. 

Tenants  as  a  class  are  usually  poor,  but  their  livelihood  is 
assured;  their  food,  housing,  and  clothing  are  better  than 
those  of  hired  laborers ;  they  are  usually  ignorant,  and  in  debt 
on  account  of  the  high  rate  of  interest,  but  they  receive  the 
protection  and  advice  of  the  landlord.  Their  assumption  of 
responsibility  is.  greater  than  that  of  hired  laborers,  and  as  a 
class  they  accumulate  more.  Even  if  he  owns  nothing,  the 
tenant's  interest  in  a  share  of  the  crop  gives  him  a  certain 
stability,  and  it  is  only  where  this  is  taken  away  (by  action  of 
the  landlord,  who  appropriates  all  the  crop  above  the  bare 
necessities  and  holds  the  tenant  in  debt)  that  he  is  reduced 
to  the  condition  of  the  day  laborer.  The  income  of  the  tenant 
having  a  carabao  or  land  is  larger  than  that  of  the  simple 
tenant;  his  position  is  the  most  stable  of  the  tenant  classes. 

In  the  most  backward  regions  of  the  Philippines  the  peas- 
ant proprietor  classes  are  very  ignorant,  and  often  not  very 
industrious.  Sometimes  they  are  really  tenants  on  share,  since 
their  land  is  controlled,  through  debt,  by  the  landlord  class. 
Such  proprietors  are  little  better  than  the  average  tenants  on 
share,  if  indeed  they  are  as  well  off. 

If  possessed  of  a  false  pride  on  account  of  ownership  of 
land,  the  peasant  proprietor  has  no  inclination  to  exert  him- 
self, and  does  not  supplement  his  income  with  the  proceeds 
of  outside  labor.  The  difference  in  the  individuality  of  peasant 
proprietors  is  especially  noticeable  when  industrious  peoples 
like  Boholanos  or  Ilocanos  settle  among  an  indolent  population. 

The  peasant  proprietor  usually  has  some  education ;  he  can 
get  money  at  a  lower  rate  of  interest  (though  still  usurious) 
than  the  tenant ;  he  builds  a  better  house  and  has  better  food 
and  clothing;  he  usually  prides  himself  on  the  ownership  of 
animals,  a  granary  of  palay,  rice,  or  corn,  and  a  small  amount 
of  land;  he  is  anxious  to  give  his  children  the  advantages  of 
education;    and  his  social  pleasures  are  much  greater  than 


260  ECONOMIC  CONDITIONS 

those  of  either  the  tenant  or  the  hired  laborer.  In  general, 
the  peasant  proprietor  lacks  the  advantage  of  supervision  by 
better  educated  men,  and  he  is  liable  not  to  get  so  much  out 
of  the  land  as  he  might.  He  stands  some  chance  of  losing 
his  possessions  by  quarrels  in  court,  crop  failures,  or  other 
misfortunes.  On  the  other  hand,  his  greater  interest  in  the 
crop  more  than  offsets  the  decrease  due  to  lack  of  supervision 
by  the  landlord,  and  he  often  grows  a  far  greater  variety  of 
crops  than  does  the  tenant.  To  sum  up,  the  peasant  proprie- 
tor is  hard  working,  but  lacks  the  elementary  education  and 
business  thrift  to  provide  for  emergencies. 

Condition  of  the  Landlord  Classes 

In  considering  the  landlord  classes  we  include  only  those  who 
own  large  estates,  either  proprietary  or  share.  Many  are  care- 
less in  their  farming,  trusting  rather  to  luck  than  to  good 
management,  and  therefore  many  haciendas  are  heavily  encum- 
bered with  debt. 

The  average  landlord  feels  that  the  proprietary  or  tenant 
system  is  the  only  one  which  will  succeed  with  the  class  of 
men  with  whom  he  has  to  deal.  He  may  even  oppose  the 
effort  of  tenants  to  better  their  condition  and  become  inde- 
pendent, because  he  feels  that  he  is  being  deprived  of  labor. 

In  general,  the  landlord  class  in  the  Philippines  has  no  appre- 
ciation of  modern  methods,  and  does  not  give  enough  atten- 
tion to  the  land.  Systems  of  accounts  are  needed,  as  well  as 
carefully  worked  out  farm  systems,  and  a  greater  knowledge  of 
farming  and  business  is  required.  Encouragement  of  greater 
efficiency  in  laborers  through  general  education,  fair  treat- 
ment, and  just  reward,  and  the  use  of  modern  methods  give 
better  results  in  agriculture  than  the  advance  and  debt  system 
at  high  rates  of  interest,  such  as  now  prevails  on  nearly  all  large 
Philippine  estates.  This  advance  and  debt  system  seems  at 
first  sight  advantageous  to  the  landlord,  since  he  receives  a 
large  rate  of  mterest  and  is  able  to  hold  his  tenants.    It  is 


LAKB  TENUKE  261 

really,  however,  disadvantageous  to  him,  since  it  compels  him 
to  invest  all  his  money  in  agriculture.  Were  the  hired  labor- 
ers and  the  tenants  independent  of  these  advances,  the  land- 
lord classes  could  invest  their  money  in  other  enterprises  and 
increase  general  business  activity  in  the  Philippines. 

Encouragement  of  an  Agricultural  Middle  Class 

So  far  as  the  Islands  in  general  are  concerned,  the  peasant 
proprietor  is  the  best  citizen  because  of  his  stability  and  his 
sense  of  responsibility.  Few  of  the  tillers  of  the  soil  in  the 
Philippines  get  out  of  the  land  nearly  what  it  should  produce  ; 
nevertheless  it  is  probable  that  the  peasant  proprietor,  although 
lacking  supervision  of  the  landlord,  produces  more  than  other 
agricultural  laborers.  But  more  than  this,  the  independent 
tiller  of  the  soil  is  the  best  citizen  ;  a  man  who  owns  something 
for  the  government  to  protect  takes  a  greater  personal  interest 
in  that  government.  It  is  noteworthy  that  the  lawless  elements 
with  which  the  Philippines  have  at  times  been  harassed  have 
not  originated  where  peasant  proprietors  predominate.  The 
peasant  proprietary  system  has  disadvantages.  In  the  culti- 
vation of  export  crops  such  as  sugar  and  tobacco,  and,  to  a 
less  extent,  abaca  and  copra,  the  hacienda  system  is  often  the 
best,  since  the  tillers  of  the  soil,  when  left  to  themselves,  fre- 
quently produce  a  low-grade  article,  and  are  at  the  mercy  of 
the  middlemen.  In  such  cases  agricultural  progress  may  be 
hampered ;  for  instance,  at  the  present  time  it  would  be  im- 
possible for  peasant  proprietors  to  improve  the  methods  of 
producing  sugar,  as  is  being  done  on  the  large  sugar  haciendas. 
When  food  crops  are  raised,  however,  the  peasant  proprietor, 
as  consumer,  is  directly  interested  not  only  in  the  amount  but 
in  the  quality  of  the  crop. 

The  government  recognizes  the  desirability  of  an  independ- 
ent agricultural  middle  class,  that  is,  a  class  between  the 
hired  laborer  and  the  landlord,  for  independent  citizenship 
is  always  the  basis  of  democracy.    The  homestead  laws,  the 


262  ECONOMIC  CONDITIONS 

activity  looking  toward  the  settling  of  land  titles,  and  the 
agitation  for  lower  rates  of  interest,  all  have  in  view  the 
extension  and  protection  of  the  peasant  proprietary  class. 


PUBLIC  LAND  AND  HOMESTEADS 

To  obtain  title  to  a  piece  of  public  land  in  the  Philippines, 
certain  government  regulations  must  be  carried  out  and  cer- 
tain sums  of  money  paid.  The  mere  settlement  and  tillage 
of  the  land  do  not  give  title.  There  are  three  methods  in 
the  Philippines  whereby  public  land  may  be  owned  or  con- 
trolled by  an  individual.  First,  a  plot  of  16  hectares  (40  acres) 
of  unreserved,  unappropriated  public  land  which  is  not  more 
valuable  for  mining  or  forestry  can  be  taken  as  a  homestead ; 
the  person  taking  up  this  land  must  reside  on  it  for  a  period 
of  two  years  immediately  preceding  the  date  of  filing  his 
final  proof,  cultivating  and  improving  it  for  five  years,  and 
must  pay  PlO  at  the  beginning  and  at  the  end  of  the  term. 
The  fees  may  be  paid  in  installments  of  P4  each.  Secondly,  a 
plot  of  16  hectares  of  public  land  which  has  not  been  surveyed 
under  either  the  Spanish  or  the  American  rule  may  be  purchased 
by  an  individual ;  although  it  is  not  necessary  for  him  to  reside 
on  the  land,  he  must  cultivate  it  for  five  years  before  he  can  ob- 
tain a  full  title.  Thirdly,  public  lands  are  also  leased  to  individ- 
uals, corporations,  or  companies  in  parcels  of  not  more  than  1024 
hectares  (2400  acres)  for  a  period  of  twenty-five  years  with  the 
privilege  of  renewing  the  lease  for  another  twenty-five  years.^ 

The  amount  of  public  land  in  the  Philippines  is  very  large  ; 
nevertheless,  the  results  obtained  from  the  homestead  law  have 
been  unsatisfactory.  In  the  year  1912  only  3105  homesteads 
were  taken,  the  largest  in  a  number  of  years  and  double  that 
for  the  year  1910.  Of  the  applications  filed  five  years  before, 
five  per  cent  of  the  applicants  did  not  cultivate  any  of  the 
land  applied  for,  and  fifty  per  cent  were  not  complying  with 

1  "  Primer  containing  Questions  and  Answers  on  the  Public  Land-laws 
in  Force  in  the  Philippines"  ;  also  Act  1864  of  the  Philippine  Legislature. 


LAND  TENURE 


263 


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264  ECONOMIC  CONDITIONS 

the  law  concerning  residence.  The  average  area  cultivated  was 
four  hectares.  The  Filipinos  often  become  squatters  on  land  in 
preference  to  taking  up  a  homestead.  In  some  places  landlords 
oppose  homesteading  by  the  tenant  class.  In  certain  regions 
where  most  of  the  public  land  is  in  the  highlands,  the 
people  prefer  to  lease  land  in  the  lowlands,  so  that  they  may 
grow  irrigated  rice.  Undoubtedly  the  building  of  roads  into 
the  interior  of  certain  islands  will  increase  the  number  of 
homestead  applications  there.  Lack  of  animals  has  in  many 
instances  reduced  the  number  of  applicants ;  in  general,  also, 
the  village  system  has  kept  a  hold  on  the  tenant,  who  has 
preferred  to  live  with  his  relatives  rather  than  establish  him- 
self alone  at  some  distance  from  the  barrio.  With  the  excep- 
tion of  a  few  peoples  such  as  the  Ilocanos  and  the  Boholanos, 
the  pioneer  spirit  has  been  lacking  among  the  Filipinos. 

By  1918  conditions  were  still  far  from  satisfactory,  although 
the  increase  in  applications  had  been  very  great.  From  1904 
to  1912  there  were  17,000  applications,  and  from  1912  to 
1918  there  were  43,000,  making  60,000  applications  in  all. 
Of  these  about  30,000  had  been  approved,  the  other  half 
having  been  withdrawn  or  pending.  The  number  of  Torrens 
titles  granted  was  1640.  Most  of  the  applications  were  from 
Nueva  Ecija;  Tayabas,  Cagayan,  and  Camarines  follow  in 
the  order  named. 

Most  of  the  leases  to  corporations  have  been  made  in 
Davao.  There  are  some  leaseholds  in  other  parts  of  Mindanao 
and  Sulu. 

AGRICULTURAL  COLONIES 

One  reason  fot*  the  large  number  of  homestead  applications 
filed  in  Nueva  Ecija  is  its  proximity  to  the  densely  populated 
Ilocano  provinces  and  the  southern  part  of  the  Central  Plain 
of  Luzon.  (See  Chart  XXXIV.)  There  are  large  areas  of 
fertile  unoccupied  land  in  the  Department  of  Mindanao  and 
Sulu  which  are  too  distant  to  be  settled  by  individual  initi- 
ative alone.    In  these  the  government  is  settling  colonies. 


LAND  TENURE  265 

Cotobato  is  the  principal  region.  In  1917  it  had  six  colo- 
nies with  929  families,  or  5310  persons.  They  cultivated 
more  than  1000  hectares  of  rice  land  alone,  besides  raising 
quantities  of  corn  and  other  products.  They  had  3893  pigs 
and  14,560  chickens.  All  this  had  been  accomplished  since 
Act  Number  2254  was  passed  in  1913.  The  government 
paid  the  passage  of  the  colonists,  advanced  money,  and  pro- 
vided carabaos  and  farm  implements.  By  1916  the  colonies 
were  well  established,  and  the  colonists  had  begun  to  repay 
these  advances. 

Act  Number  2806  authorizes  provincial  boards  to  organize 
and  manage  agricultural  colonies  on  public  lands. 

LAND  TITLES 

Throughout  the  Philippines  much  of  the  land,  both  large 
and  small  parcels,  is  held  by  people  who  have  no  documentary 
title  to  it.  In  most  cases  their  titles  can  be  proved.  In  many 
cases  large  tracts  are  disputed  by  two  or  more  parties ;  or 
squatters  have  taken  possession,  claiming  them  as  public 
land.  In  a  few  instances  this  situation  has  produced  a  very 
chaotic  condition.  The  laws  of  the  Philippines  allow  indi- 
viduals to  prove  their  ownership  of  pieces  of  land  in  courts 
of  land  registration,  and  to  obtain  legal  registered  Torrens 
titles.  In  time  all  parcels  of  land  will  be  legally  registered, 
and  agriculture  will  be  placed  on  a  much  firmer  basis  than  it 
now  is.  It  is  the  practice  of  the  courts  to  grant  Torrens 
titles  when  ten  years'  continuous,  undisputed  occupation  of 
the  land  is  proved. 

The  percentage  of  farms  held  under  legal  title  varies  in 
different  parts  of  the  Islands.  For  instance,  in  Union  Province 
eighty  per  cent,  that  is,  about  70,000  parcels,  are  held  under 
no  legal  title ;  in  Rizal  about  fifty-five  per  cent  of  the  farms, 
or  about  16,000  parcels,  are  also  held  under  no  legal  title. 
From  1903  to  1918  there  had  been  for  the  entire  Philippine 
Islands  only  about  15,000  applications  for  registration  of  title, 


266  ECONOMIC  CONDITIONS 

of  which  more  than  12,000  had  been  confirmed  by  the  courts. 
The  individual  registration  of  titles  is  slow  and  costly,  par- 
ticularly for  small  parcels.  The  law  therefore  provides  that 
cadastral  surveys  may  be  made  covering  whole  municipalities. 
From  1903  to  1918  there  were  220  cadastral  surveys,  cover- 
ing 235,000  parcels.  Even  under  the  cadastral  system  the 
registering  of  land  titles  will  be  comparatively  slow,  how- 
ever, and  a  satisfactory  situation  with  respect  to  titles  of 
agricultural  lands  cannot  be  expected  within  this  generation. 

INTEREST  RATES 

The  exorbitant  interest  charges  in  agriculture  which  have 
obtained  in  the  Philippines  have  been  noted  in  this  chapter. 
The  necessity  of  reducing  these  is  evident.  Legislation  has 
made  high  rates  illegal.  The  question  really  depends  on  land 
tenure  and  available  capital,  which  is  discussed  under  Ex- 
change, in  Chapter  XYIII.  Act  Number  2508  and  amend- 
ments authorize  the  organization  of  Agricultural  Credit 
Cooperative  Associations.  By  1918  there  had  been  240  of 
these  societies  organized ;  about  half  of  them  were  successful. 
These  had  pooled  the  money  received  as  membership  fees, 
and  were  lending  it  successfully  to  their  members.  The  ex- 
tension of  the  number  of  these  societies  and  their  usefulness 
were  greatly  hampered,  however,  by  the  lack  of  capital.  In 
1919,  therefore,  the  Philippine  Legislature  passed  Act  Num- 
ber 2818  appropriating  Pi, 000,000  for  investment  in  loans 
to  Agricultural  Credit  Cooperative  Associations.  All  this 
money  was  distributed  in  1919.  Although  this  Act  is  un- 
doubtedly a  step  in  the  right  direction,  its  purposes  are 
limited.  Only  F2000  can  be  lent  to  any  association,  and 
the  period  of  maturity  is  fixed  as  of  June  30,  1925.  More- 
over, these  loans  have  been  granted  only  for  the  breaking 
and  cultivation  of  new  rice  or  corn  lands;  or  for  the  pur- 
chase of  work  cattle  or  agricultural  implements  necessary  to 
increase  the  production  of  rice  and  corn;  that  is,  this  Act 


LAND  TENURE  267 

aims  particularly  at  effecting  an  increase  in  the  food  supply 
of  the  Islands.  If  these  loans  prove  successful,  the  Legisla- 
ture may  be  persuaded  to  appropriate  additional  capital  for 
the  purpose  of  financing  small  farmers  in  general,  no  matter 
what  the  product  of  their  farms  may  be. 

CACIQUISM 

It  is  evident  that  the  ignorance  of  the  agricultural  classes, 
their  lack  of  initiative,  and  their  inability  to  care  for  them- 
selves, together  with  the  ancient  custom  of  loans,  high  interest  ,^ 
rates,  and  honor  connected  with  debt,  place  a  considerable 
amount  of  power  in  the  hands  of  large  landowners  and  persons 
of  intelligence.  In  the  Philippines  the  possessor  of  such  power 
is  called  a  cacique.  The  control  which  the  cacique  may  exer- 
cise over  his  tenants  or  even  over  peasant  proprietors  has  been 
discussed  at  length  in  this  chapter,  and  applies  not  only  to 
agricultural  affairs,  but  to  everyday  private  and  public  matters. 
Often  so  complete  is  the  control  of  the  cacique  that  he  can 
use  his  power  to  his  own  advantage  and  to  the  detriment  of 
the  tillers  of  the  soil.  It  is  such  abuse  that  has  attracted  odium 
to  the  word.  During  the  last  ten  years  the  power  of  this 
class  of  men  has  waned  with  the  increase  of  education  and 
the  greater  initiative  and  independence  of  the  people. 

This  question  is  a  delicate  one,  but  will  probably  be  solved 
in  time  by  the  education  of  the  masses,  both  in  and  outside  the 
schools.  Great  care  must  be  taken,  of  course,  that  the  laborer, 
while  given  a  knowledge  of  his  rights  and  a  desire  for  better 
things,  is  not  at  the  same  time  deprived  of  his  present  ideas 
of  the  honor  of  paying  obligations.  This  might  result  in  as 
bad  a  condition  as  that  on  the  haciendas  of  Negros.  Laborers 
who  are  not  capable  of  becoming  peasant  proprietors  must  be 
taught  to  feel  the  force  of  moral  obligation,  if  the  power  of 
the  landlord  through  time-honored  custom  is  removed.  As 
they  become  aware  of  their  rights,  laborers  must  acquire 
a  corresponding  sense  of  responsibility.     That  the  present 


268 


ECONOMIC  CONDITIONS 


system  of  public  instruction  Avill  finally  do  away  with  one- 
man -power  there  can  be  little  doubt.  The  following  extract 
from  the  report  of  the  Director  of  Education,  1912,  is  of 
interest  in  this  connection: 

The  aims  of  instruction  in  the  lower  grades  of  the  public  schools 
are  to  enable  the  pupil  to  understand,  read,  and  write  simple  English ; 
to  give  him  a  sufficient  knowledge  of  figures  so  that  he  can  later  protect 
his  own  interests  in  minor  business  dealings ;  and  to  provide  him  with 
a  limited  fund  of  information  on  the  subjects  of  geography,  sanitation 
and  hygiene,  government,  and  standards  of  right  conduct. 

In  1918  the  Legislature  provided  funds  to  extend  both  primary  and 
intermediate  education  to  all  children  of  the  Philippines.  The  following 
table  indicates  the  growing  importance  and  scope  of  public  education 
in  the  Philippines : 


5C 

o 

J  , 

s 

-^ 

o  a 

o 

faol 

O 

<  & 

H  H 

:i  H 

» 

t^  O  J 

2  ^ 

C   H   H 

^   i^ 

<  ^ 

S5 

5?.  fa   r 

?,  o 

W  H  "^ 

^ 

§ 

tf 

u 
m 
s 

D 
^ 

11 

n 

> 

< 

OS 

W  0 

>< 
< 

5S 

2  Cm 

m 

5« 

1 

O  A  ^ 

pi 

1908 

3,932 

486,676 

339,243 

264,807 

P5, 12  7, 11 7. 15 

10.53 

1,394,000 

34.09 

1909 

4,424 

570,502 

405,478 

299,625 

5,747,997.32 

10.08 

1,419,700 

40.10 

1910 

4,531 

587,317 

427,165 

314,336 

6,475,326.81 

11.03 

1,445,900 

40.61 

1911 

4,404 

610,493 

446,889 

355,722 

6,447,713.25 

10.56 

1,472,400 

41.46 

1912 

3,685 

529,665 

395,075 

329,073 

6,527,636.65 

10.43 

1,499,500 

35.32 

1913 

2,934 

440,050 

329,756 

287,995 

6,461,322.41 

14.68 

1,527,100 

22.26 

1914 

4,235 

621,030 

489,070 

428,552 

7,639,178.65 

12.30 

1,655,200 

39.93 

1915 

4,291 

621,114 

501,630 

448,014 

8,056,121.10 

12.97 

1,583,900 

39.21 

1916 

4,412 

638,543 

.523,272 

471,195 

7,430,439.73 

11.64 

1,611,600 

39.62 

1917 

4,702 

675,998 

567,625 

514,263 

9,164,222.58 

13.56 

1,639,800 

41.22 

1918 

4,747 

671,398 

569,475 

521,377 

10,730,210.00 

15.98 

1,668,500 

40.24 

Since  the  agricultural  tenants  are  beginning  to  organize 
themselves  into  unions,  and  the  government  has  passed  a  law 
authorizing  the  appointment  of  a  committee  to  investigate 
the  conditions  of  the  agricultural  tenants,  the  question  becomes 
one  that  must  be  solved. 


LAND  TENURE  269 

At  the  beginning  of  the  year  1918  there  was  organized  in 
the  Miinicipahty  of  Bulacan,  in  Bulacan  Province,  a  society 
called  Union  fig  Magsasaka,  composed  of  agricultural  laborers 
commonly  called  "  aparceros."  The  aim  of  the  society  was  the 
betterment  of  the  conditions  of  the  aparceros.  From  the  be- 
ginning this  society  was  an  important  body,  since  it  had  nine 
hundred  and  seventy-three  members,  with  committees  properly 
organized  in  several  barrios  of  the  municipalities  of  Bulacan, 
Bokawe,  Guiguinto,  and  Bigas. 

The  conditions  of  agricultural  labor  (aparceria)  which  ex- 
isted in  the  province  of  Bulacan  before  this  society  came  into 
existence  were  as  follows:  the  harvested  palay  was  divided 
into  equal  parts  between  the  landowner  and  the  agricultural 
laborer,  the  expenses  for  preparing  the  land  and  cultivating 
it  being  met  by  the  tenants.  The  agricultural  laborers  did  not 
object  to  dividing  the  product  into  equal  parts,  but  wished  the 
expenses  also  to  be  divided  equally. 

The  laborers  made  the  following  demands:  (1)  that  the 
expenses  for  the  transplanting,  sowing,  reaping,  and  threshing 
be  divided  between  the  landowner  and  the  agricultural  laborer ; 
(2)  that  the  straw  be  for  the  laborer ;  (3)  that  the  expenses 
for  the  transportation  of  that  part  of  the  harvest  belonging  to 
the  landowner  be  met  by  him,  the  agricultural  laborer  taking 
charge  of  the  work;  (4)  that  the  land  commonly  called  "  cara- 
tin  "  (lands  near  the  sea  which  become  flooded  at  high  tide) 
be  the  subject  of  a  special  contract  between  the  landowner 
and  the  laborer  (aparcero) ;  (5)  that  the  seed  be  the  land- 
owner's, but  that  an  equal  amount  of  palay  be  given  to  the 
aparcero  before  the  partition  of  the  crop ;  (6)  that  the  money 
lent  to  the  aparcero  be  paid  in  palay  at  current  market  value  ; 
(7)  that  no  member  of  the  Union  ng  Magsasaka  should  be 
dismissed  except  after  an  investigation  by  the  society  and  the 
landowner ;  in  the  same  way  no  member  of  the  society  should 
quit  work  without  six  months'  notice  to  the  landowner. 

As  a  result,  an  agreement  was  reached  between  the  land- 
owners of  Guiguinto  and  the  representatives  of  the  association : 


270  ECONOMIC  CONDITIONS 

1.  The  expenses  incurred  by  the  transplanting  of  seed,  the 
planting,  reaping,  and  threshing,  shall  be  divided  into  equal 
parts  between  the  landowner  and  the  agricultural  laborer. 

2.  The  product  harvested  shall  be  divided  between  the 
agricultural  laborer  and  the  landowner. 

3.  The  straw  left  in  the  threshing  shall  also  be  divided 
between  the  two  parties,  but  the  quantity  necessary  for  feeding 
the  carabaos  in  the  intervening  period  between  the  planting 
and  the  reaping  shall  be  deducted  before  the  division. 

4.  The  expenses  for  the  transportation  of  the  share  of  the 
landowner  shall  be  met  by  him,  but  the  work  shall  be  done 
by  the  laborer. 

5.  The  lands  called  "  caratin  "  (lands  which  become  flooded 
at  high  tide)  shall  be  the  subject  of  a  special  contract  between 
the  two  parties. 

6.  The  seed  shall  be  the  landowner's,  and  shall  be  returned 
by  the  agricultural  laborer  in  the  same  quantity  and  quality 
after  the  harvest. 

7.  The  total  amount  of  money  borrowed  by  the  laborer  for 
the  preparation  of  the  land  and  the  planting  shall  be  paid  in 
palay  at  the  current  market  value.  All  money  borrowed  for 
different  objects  other  than  the  one  already  stated  shall  accrue 
at  interest  not  higher  than  that  allowed  by  Act  Number  2655, 
known  as  the  Usury  Law. 

8.  Any  member  affiliated  with  the  Union  ng  Magsasaka 
shall  not  be  dismissed  without  an  investigation  by  the  repre- 
sentatives of  both  parties. 

9.  No  member  affiliated  with  the  Union  fig  Magsasaka  shall 
leave  or  quit  work  without  six  months'  notice  to  the  landowner. 

The  landowners  of  Bokawe  would  not  enter  into  any  terms 
of  agreement  with  the  members  of  the  Union,  and  so  the 
laborers  emigrated  to  neighboring  provinces.^ 

1  From  the  report  of  the  Director,  Bureau  of  Labor,  1918. 


LAND  TENURE  271 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  Cause  of  the  formation  of  small  land  holdings  in  the  Philip- 
pines. 2.  Regions  in  which  they  predominate.  3.  The  medium- 
sized  plots  and  democracy.  4.  Regions  where  large  land  holdings 
predominate.  5.  Large  holdings  in  relation  to  extensive  agri- 
culture. 

6.  The  cause  of  the  scattered  holdings  in  Philippine  agricul- 
ture. 7.  The  bad  effect  of  this  system.  8.  What  steps  Filipino 
agriculturists  take  to  reduce  these  bad  effects.  9.  The  probable 
results  of  education,  advance  in  agriculture,  and  advance  in  pros- 
perity and  the  standard  of  living  on  the  consolidation  of  scattered 
holdings. 

10.  Why  is  the  peasant  proprietor  the  backbone  of  a  country 
like  the  Philippines  ?  11.  How  can  the  number  of  peasant  pro- 
prietors be  increased  ? 

12.  Share  systems  used  in  the  Philippines.  13.  The  theoretical 
advantage  of  the  share  system  over  the  proprietary  system  (a)  for 
the  laborer,  (U)  for  the  proprietor.  14.  Duties  of  (a)  the  laborer, 
(h)  the  proprietor.  15.  Division  of  the  crop  among  the  factors  of 
production,  that  is,  (a)  the  land,  (h)  the  capital,  such  as  carabaos 
and  implements,  and  (c)  the  laborer. 

16.  Abuses  of  the  system  (a)  by  the  landlord,  (h)  by  the  tenant. 
17.  Economic  status  of  the  share  tenant.  18.  Can  these  abuses 
be  regulated  by  law?  19.  What  will  be  the  effect  of  education 
and  general  economic  progress  on  the  relations  between  tenant  and 
landlord  ? 

20.  Have  a  student  draw  up  a  bill  which  shall  regulate  the 
aparceria  system  (share  system)  by  protecting  the  aparcero  as  well 
as  the  landlord.  21.  Have  the  class  convene  as  the  Philippine 
Senate  and  discuss  this  bill.  Such  a  bill  was  discussed  in  the 
Philippine  Senate  in  1918. 

22.  Why  the  public  lands  of  the  Philippines  should  not  fall 
into  the  hands  of  a  few.  23.  How  the  Homestead  Law  prevents 
them  from  doing  so. 

24.  From  Charts  XXXIV  and  XXXV  decide  which  provinces 
and  regions  of  the  Philippines  should  have  the  least  homestead 


272  ECONOMIC  CONDITIONS 

applications ;  which  the  most.  25.  Indicate  what  you  think  are 
the  principal  regions  of  homesteading,  and  tell  what  peoples  are 
settling  in  each. 

26.  You  own  a  farm  of  twenty  hectares,  but  have  no  legal  title 
to  it.  You  wish  to  borrow  P2000  to  make  improvements.  Will 
the  bank  lend  you  money  ?  Why  ?  27.  On  what  security  will  you 
be  able  to  borrow  the  money  ?  28.  What  interest  shall  you  have 
to  pay  ?   29.  Compare  it  with  bank  interest. 

30.  The  provisions  of  Act  496.  31.  The  Land  Registration  Act. 
32.  The  effect  of  this  law  in  lowering  interest  and  improving 
agricultural  conditions. 

33.  The  following  statistics  are  taken  from  the  census  of  1918  : 

There  are  88,086  farms  in  La  Union  with  an  area  of  65,932.89  hec- 
tares, valued  at  P38,098,118.  Of  these  farms  1089  are  under  Torrens 
titles,  2301  under  royal  titles,  3581  under  possessory  titles,  180  under 
judicial  titles,  10,741  under  private  deeds,  and  69,706  under  no  title 
other  than  mere  occupation  by  those  working  them.  Furthermore, 
72,593  of  them  are  worked  by  owners  ;  the  remaining  15,493  are  worked 
by  tenants,  either  under  lease  or  rent,  payment  being  made  in  produce, 
money,  or  labor. 

In  Rizal  there  are  29,994  farms  with  an  area  of  42,981.42  hectares, 
valued  at  P9,903,914.  Of  these  farms  2137  are  under  Torrens  titles,  675 
under  royal  titles,  2309  under  possessory  titles,  462  under  judicial  titles, 
6522  under  private  deeds,  and  16,357  under  no  form  of  title  other  than 
mere  occupation  by  those  working  them.  Furthermore,  18,061  of  them 
are  worked  by  owners;  the  remaining  11,833  are  worked  by  tenants 
under  conditions  described  for  La  Union. 


Display  and  compare  these  statistics,  and  on  the  basis  of  these 
data  comment  on  certain  economic  differences  in  the  provinces  of 
La  Union  and.  Rizal. 

34.  A  Committee  on  Customary  Law  has  been  appointed  by 
the  Insular  Government.  Compile  some  of  the  customary  laws 
in  so  far  as  they  affect  commerce,  industry,  and  agriculture  in 
your  locality.  35.  Under  what  procedures  have  these  customary 
laws  been  applied  ?  36.  Could  they  be  applied  in  the  regular 
courts  of  the  Philippines  ? 

37.  How  might  government  bonded  warehouses  be  of  assistance 
to  small  landowners  and  to  farmers  of  rice  on  shares  ? 


LAND  TENURE  273 

38.  Act  2865,  passed  by  the  Legislature  in  1919,  provides  for  a 
special  committee  to  take  charge  of  the  investigation  of  contro- 
versies between  the  owners  and  tenants  of  large  estates.  Deter- 
mine what  the  government  has  done  to  carry  out  the  provisions 
of  this  law.  In  1919  a  committee  was  appointed  by  the  governor- 
general  to  investigate  and  render  a  report  on  the  tenant  prob- 
lem on  an  estate  in  Rizal  Province. 

39.  Act  2508  and  the  organization  and  practices  of  Agricultural 
Credit  Cooperative  Associations. 

40.  Has  your  province  organized  any  agricultural  colonies  on 
public  land  by  authority  of  Act  2806  ?  If  so,  have  they  been 
successful  ?    If  not,  why  ? 

41.  In  the  table  it  will  be  noted  that  the  average  cost  of  edu- 
cating pupils  is  gradually  increasing.  Explain  why.  42.  What 
percentage  of  the  school  population  is  receiving  an  education  ? 
43.  If  the  entire  school  population  of  the  Philippines  receives  the 
same  average  education  that  is  now  being  given  to  pupils  actually 
in  schools,  how  much  will  it  cost  the  government  ?  44.  Are  the 
actual  plans  of  the  government  wider  in  scope  ? 

Suggestions  for  the  Study  of  Local  Conditions 

1.  Size  of  parcels  of  land.  2.  If  large  plantations  exist,  explain 
how  they  are  managed.  3.  Systems  of  share  holding,  and  the  eco- 
nomic and  social  status  of  the  cultivators.  4.  Relations  with  pro- 
prietors.   5.  Peasant  proprietors,  their  economic  and  social  status. 

6.  Examples  of  persons  leaving  the  community  to  take  up 
homesteads.  7.  Examples  of  homesteads  taken  up  in  the  locality. 
8.  Local  interest  rates  on  agricultural  loans. 

Suggestions  for  Reports  from  References 

1.  Average  size  of  Philippine  farms  compared  with  those  of 
other  countries.  2.  The  peasant  proprietors  of  France,  the  back- 
bone of  the  Republic. 

3.  In  1918  a  strike  of  tenant  farmers  occurred  in  Bulacan,  and 
many  moved  from  the  region  affected  to  Nueva  Ecija.  If  possible 
bring  in  a  report  of  this  or  a  similar  occurrence  and  explain  the 
fundamental  causes,  the  results,  and,  in  your  opinion,  the  reme- 
dies which  might  have  prevented  it. 


274  ECONOMIC  CONDITIONS 

4.  Lessons  from  the  pioneer  settlements  of  the  United  States 
which  apply  to  Philippine  conditions.  5.  What  the  settlement  of 
the  Cagayan  Valley,  the  Bukidnon  Plateau,  and  the  Cotabato 
Valley  means  to  the  Philippines.  6.  Reasons  why  greater  advan- 
tage of  the  Homestead  Law  has  not  been  taken. 

7.  In  1913  you  filed  application  for  a  homestead  under  Act  926. 
You  have  just  been  granted  your  Torrens  title.  Write  a  letter  to 
a  friend  telling  how  you  secured  it. 

8.  You  have  been  elected  secretary  of  a  corporation  which  pro- 
poses to  lease  land  in  Mindanao.  Write  a  letter  to  the  stockholders, 
explaining  just  what  the  directors  of  the  company  propose  to  do 
under  Act  926  and  the  Corporation  Law,  Act  1459. 

9.  Look  up  the  records  in  some  local  case  of  land  title  that  has 
been  fought  through  the  courts,  and  bring  in  a  report  as  to  the 
points  that  arose,  and  that  led  to  the  decision  granting  the 
Torrens  title. 

10.  Secure  the  data  from  the  1918  census,  and  prepare  maps 
like  those  on  Charts  XXIX  and  XXX. 


Selections  on  the  Theory  of  Economics  to  be  applied 
TO  the  Material  in  the  Chapter 


1.  Eent.    (Bullock,  pages  279-291.) 

2.  Single  tax.    (Bullock,  pages  324-330.) 


CHAPTER  XIII 
AGRICULTUEAL  LABORS 

Since  nearly  all  labor  in  the  Philippines  is  at  present  agri- 
cultural, and  its  problems  differ  from  those  pertaining  to 
labor  engaged  in  manufacture  and  commerce,  agricultural 
labor  deserves  to  be  considered  separately. 

Statistics  on  occupations  in  the  Philippines  are  often  mis- 
leading; for  the  same  individual  frequently  pursues  more 
than  one  occupation.  Agriculture  is  nearly  always  the  chief 
employment,^  but  the  income  of  almost  all  Philippine  agri- 
culturists is  considerably  augmented  during  the  off-season 
and  in  spare  time  by  fishing,  trading,  weaving,  driving,  and 
similar  employments. 

Philippine  Village  Labor 

The  provinces  of  the  Philippines  are  divided  politically  into 
townships,  and  these  again  into  barrios  with  the  centro  de 
poblacion  as  the  center.  In  most  regions  the  people  of  the 
barrios  are  grouped  into  villages  (sitios),  consisting  of  clusters 
of  from  five  to  several  hundred  houses.  In  only  a  few  places 
do  the  people  live  in  isolated  houses  on  the  land  they  cultivate. 

1  In  the  economic  sense  of  the  word,  labor  is  any  physical  or  mental 
action  which  produces  wealth.  It  includes  not  only  manual  labor,  but  that 
of  supervision  and  direction.  In  the  popular  sense,  however,  the  word  does 
not  include  the  effort  of  supervision  and  direction.  In  this  chapter  the 
word  is  so  used,  and  refers  to  peasant  proprietors,  tenants  for  rent,  and 
share  and  hired  laborers. 

2  In  the  United  States  secondary  production  is  not  common  ;  in  the  East 
and  in  parts  of  Europe  it  is  quite  general.  In  Germany  twelve  per  cent  of 
the  persons  engaged  in  agriculture,  forestry,  stock  raising,  or  fishing  have  a 
second  or  third  occupation  (Buecher). 

276 


276  ECONOMIC  CONDITIONS 

The  founding  of  these  villages  can  often  be  accounted  for 
by  economic  reasons,^  but  political  and  social  considerations 
have  been  even  more  potent.  The  persistence  of  villages  has 
economic,  political,  and  social  significance. 

It  is  supposed  that  the  Malayan  peoples  came  to  the  Phil- 
ippines in  boats  called  "  barangayes,"  under  the  command  of 
a  captain  or  pilot.  The  land  in  a  settlement  was  apportioned 
among  the  families,  and  all  continued  to  live  under  the  direc- 
tion of  the  chief.2  These  little  communities  were  held  together 
by  the  need  of  mutual  protection  aganist  the  depredations  of 
neighboring  villagers.  After  the  conquest  the  Spaniards 
built  on  this  system.  They  concentrated  the  people  in  vil- 
lages to  Christianize  them  and  make  their  government  easier, 
and  also  to  protect  them  from  bands  which  had  not  "  come 
under  the  bells  "  and  from  the  Mohammedan  Moros  of  Minda- 
nao and  Sulu.  A  cause  for  the  concentration  of  people  in  rice 
regions  is  that  the  flooded  fields  are  not  good  places  for  houses, 
which  are  consequently  clustered  together  on  higher  land.^ 

1  See  Chapter  X. 

2  Compare  with  the  discussion  of  Ilocano  immigration  on  page  224. 

8  The  result  of  intervillage  warfare  in  the  Mountain  Province  is  thus 
described  by  C.  R.  Moss,  Division  Superintendent  in  1910 : 

Igorot  villages  have  been  settled  in  easily  defendable  spots,  on  account  of 
feuds  with  neighboring  people.  The  superstition  of  the  Igorots  in  their  primitive 
state  is  such  as  to  lead  to  a  ceaseless  condition  of  strife  between  neighbors. 

The  practice  of  head  hunting  is  a  part  of  the  religion  of  most  wild  Igorots.  A 
head  is  taken  from  a  village ;  the  people  of  that  village,  to  appease  the  spirits, 
are  bound  to  secure  a  head  from  the  offenders.  The  duty  of  collecting  this  so- 
called  "debt  of  life"  falls  first  on  the  relatives  of  the  beheaded  person,  and 
is  never  forgotten. 

Such  a  state  of  affairs  naturally  leads  to  open  rupture  between  villages,  and 
of  course,  since  a  village  is  likely  to  be  attacked,  it  is  advantageous  that  it  be 
located  in  a  place  which  is  easily  defendable. 

In  the  northern  subprovinces  of  the  Mountain  Province,  under  the  vigorous 
rule  of  the  provincial  authorities,  the  practice  of  head  hunting  is  being  exter- 
minated, but  this  attempt  is  so  recent  that  thus  far  there  has  been  very  little 
migration  from  the  old  villages.  On  the  other  hand,  in  the  southern  subprovinces 
heads  have  not  been  taken  for  about  two  generations,  and  all  the  towns 
are  at  peace  with  each  other.  As  a  result,  the  villages  are  generally  smaller 
than  those  of  the  wild  peoples,  and  in  their  location  agricultural  advantages 
have  been  considered  rather  than  facilities  for  defense.  Their  present  tendency 
is  to  break  up  into  smaller  groups  and  form  new  villages  in  places  suitable  for 
agricultural  work. 


AGRICULTURAL  LABOR  277 

Similar  agricultural  village  communities  also  exist  in  Java.^ 
The  land  surrounding  them  is  often  undivided  communal 
land  used  by  all  the  members  of  the  village.  Sometimes  it  is 
periodically  divided  among  the  people.  Some  lands  have  fixed 
divisions  and  are  subject  to  periodic  assignment. 

Certain  public  services  must  be  rendered  to  the  community  or  to  the 
headman,  which  were  originally  a  burden  on  the  land  rather  than  on 
the  individual.  This  might  best  be  expressed  by  saying  that  each 
person  enjoying  the  use  of  a  portion  of  the  village  domain  pays  his  rent 
in  personal  services  to  the  village.  These  services  consist  in  building 
and  maintaining  roads,  bridges,  irrigation  ditches,  markets,  cemeteries, 
watchhouses,  and  other  public  works ;  in  guarding  dikes  and  ditches  in 
time  of  flood ;  in  watch  duty ;  and  in  certain  personal  services  to  the 
village  headman,  such  as  cultivating  his  ground,  caring  for  his  horses, 
bringing  fuel,  repairing  his  house  and  sheds,  cleaning  his  grounds,  and 
accompanying  his  wife  to  market.  All  these  services  are  assigned  and 
regulated  by  the  headman  or  village  chiefs,  and  usually  may  be  bought 
off,  like  the  road  tax  m  America,  for  a  fixed  amount. 

When  the  Spaniards  came  to  the  Philippines,  they  probably 
found  some  such  system  as  this  in  the  villages.  A  modified 
form  of  this  system  still  persists  on  the  island  of  Cagayancillo, 
in  the  Visayas,  in  Sulu,  and  among  the  Moros.  It  is  approached 
in  an  organization  reported,  by  Fred  O.  Freemyer,  to  exist 
among  Ilocano  immigrants  in  Pangasinan. 

From  four  to  twelve  families  come  together.  The  houses  are  built 
within  a  common  inclosure,  and  the  land  they  farm  is  either  owned  or 
rented  in  common.  If  it  is  owned,  the  title  is  usually  in  the  name  of 
the  headman,  who  assigns  to  each  his  share.  If  it  is  rented,  the  contract 
is  usually  signed  by  the  headman  only.  During  the  planting  and  the 
harvesting  the  families  work  in  common,  but  at  other  times  each  is 
given  a  particular  part  of  the  field  to  oversee.  Such  work  as  house- 
building and  the  digging  of  irrigation  canals  is  usually  performed  in 
common,  the  one  for  whom  the  others  are  working  being  expected  to 
provide  a  small  feast  with  perhaps  "  basi  "  or  "  nipa  vino."  In  case  some 
members  of  the  community  do  not  own  carabaos  or  other  work  animals, 
they  are  allowed  to  count  two  days'  work  as  equal  to  one  day's  work  of 
a  man  with  a  carabao.  They  are  usually  very  fair  with  each  other  in 
their  dealings. 

1  Jsee  Bulletin  No.  58,  Bureau  of  Labor,  Washington,  D.  C. 


278  ECONOMIC  CONDITIONS 

These  are  the  only  instances  known  to  the  writer  where 
communal  land  tenure  is  approached  among  the  Filipinos.  If 
it  once  existed,  it  has  now  disappeared.  Group  labor,  however, 
is  still  found  in  villages.  The  Filipinos  have  been  opposed  to 
free  group  labor  on  public  works,  because  they  were  so  often 
made  the  victims  of  irregular  official  exactions.  Nevertheless, 
in  the  last  few  years  group  labor  has  been  used  in  the  construc- 
tion of  schoolhouses,  churches,  bridges,  and  even  for  the  build- 
mg  of  roads.  Group  labor  for  the  benefit  of  the  individuals 
of  a  village  is  still  widely  practiced,  though  it  is  becoming  of 
less  importance.    In  a  few  districts  it  is  not  practiced  at  all. 

Buecher  in  his  "  Industrial  Evolution "  divides  labor  in 
common  (group  work)  into  three  kinds :  companionship  or 
fraternal  labor ;  labor  aggregation ;  and  joint  labor. 

Companionship  or  fraternal  labor  occurs  when  several  workers  come 
together  and  labor  without  the  individual's  becoming  in  the  progress  of 
his  task  in  any  way  dependent  on  the  others.  .  .  .  The  sole  aim  in  union 
is  to  have  the  company  of  fellow  workmen,  to  be  able  to  talk,  joke,  and 
sing  with  them,  and  to  avoid  solitary  work  alone  with  one's  thoughts. 

The  student  whose  work  thrives  best  in  undisturbed  solitude  will  on 
hearing  this  probably  shrug  his  sympathetic  shoulders  in  pitying  con- 
tempt, and  find  the  subject  hardly  worth  serious  consideration.  But 
anybody  who  has  ever  observed  a  group  of  village  women  braking  flax, 
or  doing  their  washing  at  the  brookside,  or  watched  a  troop  of  Saxon 
field-workers  hoeing  turnips,  or  a  line  of  reapers  at  work,  or  listened  to 
the  singing  of  a  group  of  house  painters,  or  of  women  at  work  in  an 
Italian  vineyard,  will  be  of  a  different  opinion.  The  lower  the  stage  of 
a  man's  culture,  the  more .  difficult  it  is  for  him  to  stick  to  continuous 
and  regular  labor,  if  he  is  to  be  left  by  himself. 

Thus  fraternal  labor  accords  very  well  with  the  economic  principle, 
even  though  it  originates  primarily  in  the  social  instinct.  In  the  com- 
pany of  others  people  work  with  greater  persistence  than  they  would 
alone,  and  in  general,  because  of  the  rivalry,  also  better.  Work  becomes 
pleasure,  and  the  final  result  is  an  advance  in  production. 

By  labor  aggregation  we  mean  the  engaging  of  several  workmen  of 
similar  capacity  in  the  performance  of  a  united  task,  .  .  .  too  heavy  for 
the  strength  of  one  person. . . .  Labor  aggregation  is  of  special  importance 
for  seasonal  work  or  for  work  that  is  dependent  on  the  weather.  .  .  . 


AGRICULTURAL  LABOR  279 

These  circumstances  have  early  led  to  a  species  of  social  organization 
of  aggregated  labor,  founded  on  the  duty  recognized  the  world  over  of 
mutual  assistance  among  neighbors.  We  may  use  the  expression  cur- 
rent among  the  southern  Slavs  and  call  it  bidden  labor.  Whenever  any- 
body has  work  to  be  done  for  which  his  own  household  is  not  adequate, 
the  assistance  of  the  neighbors  is  sought.  They  give  it  at  the  time  with- 
out further  reward  than  their  entertainment,  which  the  head  of  the  house 
offers  in  the  accustomed  way,  solely  in  the  expectation  that  when  need 
arises  they  too  will  be  aided  by  their  neighbors.  The  work  is  carried 
out  in  sprightly  competition  amid  jokes  and  song,  and  at  night  there  is 
often  added  a  dance  or  like  merrymaking.  .  .  . 

We  come  now  to  the  last  kind  of  labor  in  common,  which  we  have 
designated  joint  labor.  Certain  tasks  in  production  require  for  their 
performance  the  simultaneous  cooperation  of  various  classes  of  labor. . . . 
Since  they  cannot  possibly  be  performed  by  one  workman,  several  work- 
men of  various  kinds  must  be  combined  in  one  group  to  form  an  organized 
and  indivisible  whole. 

Instances  from  agriculture  are  numerous.  Thus  in  drawing  in  hay 
or  corn,  the  load  builder,  the  pitcher,  the  after  raker,  in  binding, 
the  binder  and  the  gatherer,  form  natural  groups ;  in  mowing  grain  a 
second  person  is  required  to  glean ;  in  digging  potatoes  another  gathers 
them  up. 

In  the  Philippines  labor  in  common  is  often  performed  with 
the  understanding  that  the  beneficiary  will  work  in  a  like 
manner  for  each  member  of  the  group,  plowing  and  plant- 
ing fields  in  rotation,  for  instance,  and  harvesting  the  crops. 
The  beneficiary  of  an  unusual  piece  of  work,  such  as  house- 
building, recompenses  the  laborers  by  providing  for  them 
meals  of  extra  quality  and  quantity,  and  by  amusements. 
Such  a  time  is  made  the  occasion  of  a  fiesta. 

In  the  Philippines  labor  in  common  is  often  put  on  a  per- 
manent basis  of  reciprocity  into  which  the  elements  of  lottery, 
insurance,  and  banking  enter.^  The  most  common  form  is  in 
connection  with  many  of  the  village  economic  activities,  such 

1  The  data  on  this  subject  were  turned  over  to  Conrado  Benitez,  Instructor 
in  Economics  in  the  University  of  the  Philippines,  who  prepared  this  dis- 
cussion. Reports  on  the  "turnuhan"  of  Majayjay,  Laguna  Province,  by 
Getulio  Vitasa,  and  on  those  of  Cavinti,  Laguna  Province,  by  Petronio  Perez, 
deserve  special  mention  here. 


280  ECONOMIC  CONDITIONS 

as  making  kaingin ;  plowing,  planting,  harvesting,  threshing, 
and  husking ;  building  liouses ;  making  hats ;  in  fact,  doing 
any  work  which  the  member  whose  turn  it  is  wants  done. 
These  "  turnuhans,"  for  such  we  shall  call  them,  are  not  regu- 
lar associations  with  formal  rules  and  regulations.  They  are 
simply  spontaneous  associations  of  persons  with  a  common 
aim  to  help  each  other,  and  different  places  have  different 
practices  in  regard  to  details.  In  the  town  of  Cavinti,  in 
Laguna,  for  example,  help  is  given  to  one  of  the  members 
once  a  week.  Those  who  fail  to  help  must  work  alone  some 
other  day,  or  give  an  equivalent  in  money,  namely,  half  a 
peso.  The  man  who  was  expected  to  work  with  a  carabao 
must  pay  a  peso  and  a  half  in  lieu  of  service.  This  payment 
of  money  in  place  of  service  is  a  modern  development,  as 
shown  by  the  fact  that  in  tlie  original  "  suyuan  "  to  pay  money 
is  considered  a  breach  of  good  manners ;  for  the  word  '^  suyo  " 
means  favor,  and  to  pay  for  a  favor  is,  of  course,  improper.^ 

In  some  towns  where  hats  are  made  the  women  help  each 
other.  Sometimes  the  materials  are  supplied  by  the  members 
themselves ;  in  other  cases  the  one  for  whom  the  finished  hats 
are  intended  supplies  them.  There  is  always  a  fixed  minimum 
number  of  hats  to  be  made  by  each  member,  and  anybody 
failing  to  contribute  this  number  pays  the  value  in  money. 

In  regard  to  food  for  members  during  the  work,  practices 
again  differ.  In  some  organizations  members  furnish  their 
own  food;  in  others  they  are  fed  by  the  beneficiary.^ 

1  Again,  this  idea  that  it  is  improper  to  receive  money  for  a  favor  sur- 
vives even  to-day  among  the  servants  (not  the  modernized  ones  who  have 
seized  upon  the  idea  of  a  tip),  who,  ashamed  to  take  money  from  the  family 
guests  ordinarily,  do  so  when  told  that  it  is  for  cigarettes  or  buyo.  In  fact, 
to-day,  when  tipping,  it  is  good  manners  to  say  "for  tobacco  or  buyo." 

2  Group  labor,  as  originally  found  in  the  labor  turnuhan,  has  recently 
shown  an  interesting  development  in  the  provinces  of  Tayabas  and  Laguna, 
where  money  turnuhans  are  being  established.  The  money  turnuhan  is  an 
association  run  according  to  by-laws  subscribed  to  by  the  members.  These 
require  a  contribution  of  money  at  regular  intervals,  usually  every  Sunday, 
the  sum  collected  to  be  given  to  one  of  the  members  chosen  by  lot.  The 
turnuhan  runs  until  every  member  has  drawn  the  prize.  A  successful  mem- 
ber cannot  draw  again. 


AGRICULTURAL  J.A1H)R  281 

The  tiinuihaiiH  ani  run  in  ahoiil  Hh'- .same  way  everywhere,  for  tluM^on- 
stituiiouH  a(l()|)t('(l  in  (liflVriuit  towns  are  mere  (topics  of  tli(^  orij^inal  fronj 
Lucban,  in  Tayahas.  The  nnnihcr  of  nn'inhcrs  ranges  from  '2^)  to  500, 
tlie  usnal  lUimlxT  hcinjj^  between  25  and  50.  One  cxisls  in  M;ij:i\  jiiy 
which  lias  1000  members,  but  these  are  divided  into  live  scrtionsof  1*00 
each,  and  each  section  is  run  like  an  iiuh^peiulent  orL;:iiii/:ii  ion.  Thi^ 
mana<;('ment  is  ordinarily  in  the  hands  of  a  dire(!tor,  l»iil  t<>i  I  lie  hir^er 
tuiMiuhans  thcic  an;  tiire((  oirKtcrs,  (Jie  din'etor,  tJie  ,s('(ii(;ii\  licasnrer, 
and  the  insi>ector.  'IMu^  amount  of  individual  fees  ranges  from  1*0.20  to 
IM.OO  weekly.  Tlu^  nundx-r  of  years  that  a  turnuhan  runs  depends 
on  its  size.  From  one  to  five  years  is  the  usual  tim(^  limit,  but  sonu' 
turnuhans  must  run  nineteen  yejirs  before  all  the  members  can  get  their 
money  back. 

The  manager  is  granted  special  privileges  for  his  sc^rvices.  Tn  many 
turnuhans  lu^  nnuuves  tlui  first  drawing.  In  all  of  them  i\u\  winner  pays 
a  certain  jKU'cc'iitage  of  his  prizes  (from  one  to  two  ])or  cent)  for  tlu^ 
expenses  of  nuinagenu'nt.  Tlu;  turnuhans  make  ])rovisi()ns  for  their 
protection.  Mendxirs  failing  to  pay  their  dues  ;it'lir  ;i  certain  number  of 
weeks  lose  what  i\u\y  have  paid  in,  and  the  money  I  liiis  (M)ne('t«'d  is  dis- 
tributed among  tin;  nu^mbers  at  I  lie  end.  If  a  mendx'r  dies,  his  share  is 
usually  given  to  his  heir,  who  ((uidniu's  to  ])ay  tlu!  »hu's.  In  some  e,as(^« 
the  deceased's  shanj  is  turned  <iver  to  the  turnuhan.  Mendxu-s  who  hav(? 
drawn  the  prize  are  not.  p;iid  t  he  full  amount  i\\\c  llieni  ;  some  turnuhans 
retain  three  lil'tJis  of  it  ;is  security  against  noncontiniiiince  of  luiyment. 
Otluu's  simply  re(prn(^  t.vvo  bondsiiien  befor*^  the  whole  sum  is  given  the 
wiimcn-.  A  feature  of  life  insurance  present  in  some  of  th(^  turnuhans 
requires  that  tin;  lot  must  be  givi^n  to  the  nu'inlHir  who  has  suffered  a 
great  misfortune,  such  as  dcMitli  in  the  family. 

Where  m<m(*y  turnuhans  are  W(dl  managed,  they  have  proved  to  be 
beneficial  to  the  community,  for  they  have  encoinii^ed  I  he  hal)it  of  sav- 
ing. They  have  fiirnished  tlu^  nuMubers  with  \r:\,\\  .jpilal,  which  is 
reported  to  have  becni  inv(\st,e(l  in  j)roduetiv(!  <'nt,«'rprises,  siudi  as  thi^ 
buying  of  carabaos  and  the  planting  of  mon;  lands.  Others  hav(!  us(m1 
their  cajutal  in  re])airing  their  houses,  and  still  others  have  been  able  to 
pay  tluur  debts  with  it. 

The  labor  turnuhan  keeps  the  members  working,  and  nearly  always 
results  in  sonu;  pernument  improvement,  such  as  rice  fields,  hous<'s,  and 
the  like. 

Another  common  form  of  group  labor  in  Iho  Philippines  is 
in  connection  with  social  activities,  as  diKtinguiHlied  from 
the  economic  ac^tivitics  mentioned  above.  These  a(!tivitieH 
partake    of   the    nature    of    nmtual    hisurance    in    tlie    help 


282  ECONOMIC  CONDITIONS 

rendered  the  members  of  the  community.  Help  is  given  at 
baptisms,  weddings,  and  burials.  In  the  case  of  funerals  the 
work  involved  is  the  making  of  the  coffin  and  the  preparation 
of  the  food  for  the  friends.  So  long  as  a  person  does  a  slight 
bit  of  work,  he  is  considered  to  have  given  his  abuloy  or 
ambang.  Help,  moreover,  may  take  the  form  of  money  or 
of  goods,  the  latter  usually  being  eatables  for  the  many 
guests.  The  amount  of  money  or  of  goods  given  varies  with 
the  individual. 

The  courtship  of  a  woman  is  frequently  the  cause  of  many 
forms  of  group  labor,  and  the  activity  that  results  therefrom 
may  be  classed  as  economic.  A  group  of  young  men  may 
decide  to  help  the  woman  in  husking  rice.  Here  we  have 
the  beginning  of  a  socializing  activity,  for  usually  the  person 
helped  prepares  something  to  eat,  and  everybody  has  a  merry 
time,  especially  when  there  are  music  and  singing  to  keep  time 
with  the  pounding. 

An  interesting  form  of  group  labor  in  connection  with 
either  death  or  marriage  is  that  performed  by  young  men. 
If  any  member  dies  or  marries,  the  others  contribute  a  sum 
of  money  previously  agreed  on.  Besides  the  money,  they 
give  commodities,  such  as  wood  for  fuel,  and  render  service 
at  the  feast,  such  as  getting  water  and  waiting  on  the  table. 
Any  member  who  fails  to  fulfill  the  requirement  is  fined  by 
being  charged  double  the  regular  contribution ;  the  fine  must 
be  paid  within  one  week  after  either  the  funeral  or  the  wed- 
ding, as  the  case  may  be.  The  members,  in  every  instance, 
are  supposed  to  furnish  the  transportation  required. 

Still  another  form  of  group  labor  in  the  village  is  the  band- 
ing together  of  citizens  for  protection  against  fire  and  robbers. 
This  was  common  during  the  Spanish  administration ;  it  is 
still  found  in  its  original  form  in 'many  towns.  The  frequent 
Moro  raids  in  the  past  made  this  kind  of  group  labor  neces- 
sary. The  private  night  patrol,  or  ronda,  used  to  be  a  com- 
mon feature  of  Philippine  life ;  it  is  said  to  exist  still  in 
some  towns.    There  the  adult  male  citizens  take  turns  in 


AGEICULTURAL  LABOR  283 

performing  this  duty  of  watch.  Volunteer  fire  associations 
have  been  organized,  as  now  provided  for  by  law. 

In  comparison  with  the  system  of  isolated  farms  scattered 
over  the  country,  as  found  in  Cuba  and  Porto  Rico  (countries 
possessing  similar  products  and  economic  advancement),  the 
Philippine  village  system  has  points  both  for  and  against  it : 

1.  It  permits  of  group  work.  This,  however,  may  not  always 
be  beneficial,  since  it  does  not  promote  individualism  and 
independence  in  the  Filipino  agriculturists. 

2.  New  thoughts  and  ideas  are  more  easily  promulgated, 
and  news  travels  more  quickly. 

3.  Children  can  reach  their  schools  more  easily. 

On  the  other  hand,  much  can  be  said  against  the  village 
system : 

1.  Time  is  lost  in  going  from  the  home  in  the  barrio  to  the 
fields.  This  may  amount  to  several  hours  daily.  In  many 
places  this  disadvantage  is  partly  overcome  by  a  temporary 
hut  built  at  the  field  for  the  planting  or  harvest  season. 

2.  The  sanitary  problem  is  always  an  important  one  where 
people  are  congregated. 

,  3.  In  the  scattered-farm  system  there  is  less  temptation  to 
fritter  away  time  in  social  intercourse,  in  the  cockpit,  and 
the  like. 

4.  The  production  of  supplementary  farm  products  (poultry, 
eggs,  fruit,  and  the  like)  is  greater  on  scattered  farms. 

5.  In  villages  the  danger  from  fire  is  great. 
Philippine  agricultural  villages  are  gradually  being  broken 

up,  the  scattered-farm  system  being  adopted.  There  are  cer- 
tain districts  in  the  Islands  in  which  the  village  system  has 
never  existed,  at  least  not  for  centuries.  Two  small  regions 
of  scattered  farms  are  found  in  Tarlac  Province.  The  coco- 
nut regions  of  Laguna  and  Tayabas  are  chiefly  settled  in  that 
manner.  Scattered  farms  predominate  in  Marinduque,  Oriental 
Negros,  Bohol,  and  a  part  of  Cebu.  The  Carcar-Barili  district 
of  Cebu  is  probably  the  largest  single  region.  It  seems  that 
the  village  system  was  not  established  here  by  the  Spanish 


284  ECONOMIC  CONDITIONS 

government  because  the  people  could  easily  be  protected  and 
controlled.  It  is  now  densely  settled,  and  the  distance  from 
house  to  house  is  slight. 

The  village  system  persists  in  the  Philippines  largely  because 
of  custom,  the  gregarious  nature  of  the  people,  and  ties  of 
relationship.  The  family  and  clan  feeling  is  very  strong,  as 
can  be  seen  in  the  grouping  of  students  from  the  same  town 
at  provincial  capitals  and  at  Manila.  The  Filipino  family 
joins,  in  a  sort  of  family  feudalism,  even  the  relatives  who 
have  moved  to  a  great  distance.  It  is  obliged  to  look  after  all 
its  members  and  to  provide  charity  such  as  is  dispensed  by 
organizations  in  industrial  countries. 

The  village  system  holds  its  own  in  the  outlying  parts  of 
the  Islands  and  in  regions  in  which  the  land  is  divided  into 
small  scattered  plots  tilled  by  peasant  proprietors  under  the 
interleasing  system,  such  as  the  Ilocano  provinces.  In  other 
places  scattered  farms  are  gradually  increasing  with  the  estab- 
lishment of  greater  security.  New  settlers  are  building  houses 
on  their  farms,  and  there  is  a  gradual  movement  away  from 
the  villages  along  newly  constructed  roads. 

Efficiency  of  Labor 

Efficiency  of  labor  depends  on  the  inherited  strength  and 
characteristics,  the  standard  of  living,  and  the  education  and 
training.  In  preceding  chapters  (particularly  in  Chapter  XI) 
the  methods  by  which  advance  in  agriculture  will  result  in 
larger  production  per  hectare  are  discussed.  In  this  chapter 
the  question  of  larger  production  per  man  is  considered. 

INHERITED  STRENGTH  AND  CHARACTERISTICS 

His  physical,  mental,  and  moral  qualities  all  affect  the 
amount  of  wealth  produced  by  the  laborer,  and  these  depend 
largely  on  inheritance  and  training  in  early  childhood.  It  is 
a  significant  fact  that  the  child  usually  follows  the  occupation 
of  his  father,  and  so  he  is  expert  in  his  particular  kind  of 


AGRICULTUEAL  LABOR  285 

work.  This  is  especially  true  of  production  requiring  con- 
siderable skill.  For  instance,  it  used  to  be  said  that  a  good 
cutter  of  velvet  was  only  produced  in  the  second  or  third  gen- 
eration. The  Filipino  is  especially  strong  in  the  shoulders,  and 
can  lift  and  carry  better  than  he  can  perform  other  unskilled 
labor.  He  also  shows  great  dexterity  in  handicraft,  the  fine- 
ness and  evenness  of  which  excite  admiration.  In  Hawaii, 
where  peoples  of  all  nationalities  have  been  gathered  as  labor- 
ers, the  Filipinos  are  considered  especially  good  for  light 
work ;  on  heavy  work  most  of  them  are  not  satisfactory. 
They  seem  to  be  slower  than  the  Japanese. 

That  many  of  the  physical  disabilities  of  the  Filipinos  are 
due  to  the  same  causes  which  produce  the  high  rate  of  infant 
mortality  in  the  Philippines,  there  can  be  no  doubt.  If  a  child 
is  born  weak  and  is  poorly  nourished  during  the  first  few 
months  of  its  life,  it  will  not  grow  into  a  strong  man  or  woman. 
The  death  rate  per  thousand  in  Manila  durmg  the  year  1917 
was  as  follows : 

1917 

Spaniards 10.44 

Americans 7.12 

Other  Occidentals 9.96 

Chinese 14.70 

Filipinos 26.67 

This  excessive  death  rate  among  the  Filipino  population  is  due 
to  the  high  mortality  of  children.  Sixty-five  per  cent  of  these 
deaths  are  of  children  under  five  years  of  age ;  forty -nine  per 
cent,  of  infants  under  one  year  of  age.  The  following  table 
is  a  comparison  of  the  infant  mortality  in  Manila  with  that 
in  the  United  States  and  France : 

PERCENTAGE  OF 
TOTAL  DEATHS 

United  States .     18.28 

France 20. 

Manila 48.8 


286  ECONOMIC  CONDITIONS 

In  France  and  the  United  States  the  greatest  mortahty  is 
among  children  who  are  artificially  fed ;  in  Munich,  Germany, 
eighty-three  per  cent,  and  in  Berlin  ninety-one  per  cent,  of 
the  infant  mortality  occurred  in  artificially  fed  children.  The 
opposite  is  true  in  the  Philippines,  where  seventy -four  per  cent 
of  the  total  infant  mortality  occurs  among  children  who  are 
nursed  by  the  mother.  Eighty-seven  per  cent  of  the  infants 
dying  of  beriberi  and  convulsions  (malnutrition)  in  Manila 
are  nursed  by  their  mothers.  This  means  that  the  improve- 
ment of  the  physical  condition  of  the  Filipino  mother  is  an 
important  economic  question,  not  only  to  reduce  the  infant 
mortality,  but  to  increase  the  physical  strength  of  children 
that  live.  This  can  best  be  accomplished  by  reducing  poverty 
and  providing  sufficient  and  suitable  food.  If  good,  pure 
cow's  milk  can  be  provided,  great  improvement  will  result. 
The  splendid  work  done  by  the  Gota  de  Leche  Society  in 
Manila  shows  what  can  be  accomplished  by  scientific  feeding 
of  infants  with  pure  milk.^ 

THE  STANDARD  OF  LIVING 

While  his  start  in  life  has  an  important  effect  on  the  physi- 
cal and  mental  efficiency  of  the  laborer,  the  standard  of  living 
which  he  maintains  is  of  much  more  importance.  As  has  been 
stated,  on  the  plantations  in  the  Hawaiian  Islands  it  is  notice- 
able that  Filipino  laborers  are  at  first  incapable  of  doing  heavy 
work,  and  few  are  employed  on  heavy  loading  contracts.  How- 
ever, with  change  of  food  and  methods  of  living  they  are 
gradually  taking  their  places  in  all  parts  of  the  plantation, 
even,  to  some  extent,  in  the  mills,  where  the  heaviest  work 
is  done. 

Food 

The  chief  uses  of  food  are,  first,  to  form  the  material  of  the 
body  and  repair  its  wastes  ;  secondly,  to  furnish  the  energy  for 
the  work  that  the  body  has  to  do ;  and,  thirdly,  to  yield  heat 
to  keep  the  body  warm.    The  proteid  foods  are  the  principal 

1  Data  from  annual  reports  of  the  Director  of  Health,  Manila. 


AGRICULTURAL  LABOR  287 

tissue  formers,  and  make  the  framework  of  the  body.  They 
are  also  burned  up  in  the  body  like  the  carbohydrates, 
and  thus  render  important  service  as  fuel.  Fats  and  carbo- 
hydrates are  the  chief  fuel  ingredients  of  food.  Sugar  and  the 
starch  of  sweet  potatoes  and  rice  are  burned  in  the  body  to 
yield  heat  and  power.  The  fats,  such  as  the  fat  of  meat  and 
butter,  serve  the  same  purpose,  only  they  are  a  more  concen- 
trated fuel  than  the  carbohydrates.  The  different  nutrients 
can,  to  a  greater  or  less  extent,  do  one  another's  work.  If  the 
body  has  not  enough  of  one  kind  of  fuel,  it  can  use  another. 
But,  although  the  proteid  can  be  burned  in  the  place  of  fats 
and  carbohydrates,  neither  of  the  latter  can  take  the  place 
of  the  proteids  in  building  and  repairing  the  tissues.  Proteid 
occurs  most  abundantly  in  animal  foods,  namely,  meat,  fish, 
eggs,  and  dairy  products,  and  in  dried  legumes  such  as  beans 
and  peas.  Butter  and  lard  are  the  chief  animal  fats,  and  coco- 
nut, olive,  and  cotton  seed  the  most  important  vegetable  oils. 
The  most  common  edible  nuts  also  contain  considerable  fat. 
The  carbohydrates,  unlike  the  fats,  are  almost  entirely  absent 
from  the  animal  foods,  except  milk,  but  form  the  most 
important  nutrient  of  most  vegetable  foods.^ 

In  the  arctic  regions,  where  heat  is  of  prime  importance, 
fat,  blubber,  and  fish  are  eaten  almost  exclusively.  The  in- 
habitants of  the  temperate  regions  are  accustomed  to  a  mixed 
diet  of  meat,  fish,  and  vegetable  matter,  the  amount  of  the 
former  depending  on  the  wealth  of  the  people  and  the  den- 
sity of  population.  In  the  tropics  the  diet  is  largely  vegetal, 
with  a  good  deal  of  fish  and  a  small  amount  of  meat.  The 
kind  of  food  must  necessarily  depend  on  the  vegetable  and 
animal  life  available.  Along  the  coast  fish  is  eaten ;  in  the 
interior  less  fish  is  obtainable,  and  beans  and  similar  vegetable 
foods,  high  in  proteids,  are  often  substituted. 

Besides  foods  producing  energy  and  tissues,  the  body 
requires  certain  quantities  of  mineral  substances,  especially 

1  W.  O.  Atwater,  in  Farmers^  Bulletin  No.  14^,  United  States  Department 
of  Agriculture. 


288  ECONOMIC  CONDITIONS 

salt,  lime,  and  phosphorus.  All  peoples  use  narcotics  and 
stimulants,  not  as  nourishment  to  the  body,  but  for  their 
effect  on  the  nervous  system.  Such  are  spices,  alcoholic 
liquors,  drinks  from  beverage  crops,  tobacco,  buyo,  and  opium. 

The  domestic  vegetable  foods  which  form  a  part  of  the 
Philippine  diet  have  already  been  fully  discussed  in  the 
chapters  on  food  crops.  The  problems  with  respect  to  these 
are  (1)  to  increase  the  local  rice  crops,  and  so  make  the 
Philippines  less  dependent  on  the  foreign  food  supply  and 
provide  abundant  food  for  the  whole  population ;  (2)  to 
increase  the  yield  and  use  of  corn  as  the  chief  food  or  as  a 
supplementary  food  to  rice ;  (3)  through  bean  crops  to  pro- 
vide another  source  of  proteid,  which  is  now  obtained  almost 
entirely  from  fish  and  meat;  (4)  to  increase  the  amount  of 
food  in  those  regions  in  which  restricted  diet  annually  occurs  ; 
(5)  to  giye  greater  variety  to  the  Philij)pine  diet  in  all 
directions  possible,  and  especially  in  the  amount  of  fresh 
fruits  and  vegetables  consumed. 

Proper  amounts  of  fish  and  meats  may  also  provide  the 
necessary  proteids.  The  fishing  industry  is  discussed  in 
Chapter  XV,  where  it  is  shown  that  in  general  the  demand 
for  fish  is  not  supplied,  and  that  it  is  doubtful  whether 
modern  trawlers  and  equipment  can  be  introduced  to  increase 
the  supply.  The  inhabitants  of  the  Philippine  coasts  eat 
fresh  fish ;  sometimes  the  surplus  catch  is  dried.  Bagoong  is 
the  form  of  preserved  fish  most  consumed  along  the  seashore, 
and  especially  in  inland  towns.  It  is  essentially  raw  fish 
mixed  with  salt  and  allowed  to  ferment  for  days,  months,  or 
even  years.  Its  nutritive  portion  is  mostly  proteid ;  but  since 
it  is  badly  prepared  and  contains  essentially  decayed  animal 
matter,  it  is  not  a  good  food.  The  quickest  and  most  practical 
way  of  providing  a  sufficient  amount  of  proteid  for  the  diet 
of  the  Filipinos  is  to  encourage  the  growing  and  eating  of 
beans,  as  has  been  suggested  in  Chapter  IV. 

Pork  is  the  principal  meat  consumed,  and  is  found  in  all 
Philippine  markets.    The  amount  available  can  be  increased 


AGRICULTURAL  LABOR  289 

by  the  systematic  raising  of  hogs  for  the  market  and  by  im- 
proving the  breeds.  Very  httle  beef  is  now  eaten  by  the 
Fihpinos,  since  few  cattle  are  available.  If  rinderpest  can 
be  held  in  check,  the  number  of  cattle  in  the  Islands  will  pos- 
sibly increase  sufficiently  to  furnish  a  supply  of  beef  adequate 
to  the  domestic  demands.  The  present  situation  is  relieved 
to  some  extent  by  importing  chilled  or  cold-storage  beef 
from  Asia  and  Australia  (see  Chapter  XIV),  and  beef  cattle 
from  Asia. 

The  alcoholic  liquors  consumed  by  the  Filipinos  may  be 
divided  into  two  classes,  distilled  liquors  and  the  fermented 
juices.  In  the  fiscal  year  ending  1917  there  were  produced 
in  the  Philippines,  according  to  the  Collector  of  Internal 
Revenue,  14,000,000  proof  liters  of  spirits,  distilled  from  the 
sap  of  the  nipa  and  coconut  palms,  and  from  sugar  and 
grain.  This  is  an  average  of  1.4  liters  per  capita  for  the 
Islands.  In  addition  great  quantities  of  tuba,  the  fermented 
sap  of  the  coconut  palm,  are  consumed  in  the  Visayan  Islands, 
and  a  considerable  amount  of  basi,  a  drink  made  from  sugar 
cane,  among  the  Ilocanos.^ 

The  Filipinos  are  much  greater  consumers  of  tobacco  than 
of  alcoholic  beverages.  In  the  fiscal  year  1917  there  were  con- 
sumed in  the  Philippines  104,000,000  cigars  (10  per  capita) 
and  4,400,000,000  cigarettes  (440  per  capita).  The  chewing 
of  buyo  is  also  widespread,  although  it  is  much  less  prevalent 
among  the  rising  generation.  The  smoking  of  opium,  which 
threatened  to  become  general,  has  been  prohibited  by  law. 
Both  coffee  and  chocolate  are  common  drinks,  particularly 
for  the  morning  meal. 

The  Filipinos  do  not  have  a  sufficient  variety  of  food. 
Too  often  the  laborer  is  content  with  a  pot  of  rice  or  corn 
and  a  little  salted  or  dried  fish,  with  now  and  then  some 
greens.  Some  even  eat  plain  corn  or  rice  three  times  a  day. 
Some  eat  but  two  meals  a  day.    An  instance  is  on  record  of 

1  Most  imported  spirits  and  wines  and  the  domestic  beer  are  consumed 
by  the  foreign  population. 


290  ECONOMIC  CONDITIONS 

a  population  of  88,000  persons  among  whom  one  beef  and 
twenty  hogs  are  killed  weekly.  This  population  is  described 
as  being  generally  improvident,  making  little  provision  for 
the  morrow  or  even  for  the  next  meal.  Under  such  condi- 
tions the  laborer  does  not  receive  enough  nourishment  to 
sustain  his  body  properly  and  permit  him  to  labor  efficiently. 
Such  a  description  pertains  to  the  lowest  type  of  Philippine 
laborers  and  to  the  most  backward  communities.  Against 
this  type  may  be  placed  agricultural  laborers  who  take  pride 
in  a  full  granary,  who  have  considerable  variety  in  their 
meals,  and  who  in  general  are  good  livers  and  workers. 
Place  the  ordinary  Ilocano  beside  certain  of  the  people  to 
whom  he  emigrates,  and  the  effect  of  his  superior  food  will 
appear  in  his  ability  to  outwork  those  with  him. 

Wherever  Philippine  constabulary  or  scouts  are  quartered 
among  the  poorly  fed  population,  their  superior  endurance 
and  strength  are  at  once  apparent.  The  Hawaiian  Sugar 
Planters'  Association  report  that  the  majority  of  the  Filipinos 
who  come  to  them  have  never  been  accustomed  to  work ; 
that  they  come  poorly  clothed  and  ill  fed ;  and  that  it 
requires  a  considerable  amount  of  time  to  build  them  up 
properly  for  the  work  required. 

With  improvement  in  economic  conditions  in  the  Philip- 
pines the  amount  and  the  quality  of  food  have  increased  to 
a  less  extent  than  other  factors  in  the  standard  of  living. 
However,  there  has  been  a  tendency  in  the  right  direction. 
This  has  been  particularly  noticeable  with  respect  to  flour, 
the  importation  of  which  shows  a  steady  increase.  There  are 
now  few  towns  in  the  Philippines  which  do  not  possess  at 
least  one  bakery,  and  bread  with  coffee  or  chocolate  is  the 
customary  morning  meal  of  a  large  portion  of  the  inhabitants 
of  the  Philippines.  On  account  of  the  ease  with  which  it  is 
packed,  bread  is  gaining  favor  as  an  article  of  food  carried 
by  travelers  and  used  for  lunches  in  the  field.  The  impor- 
tation of  potatoes  is  steadily  increasing,  and  this  vegetable 
is  now  found  in  the  stores  of  most  provincial  towns.    The 


AGRICULTURAL  LABOR  291 

same  may  be  said  of  onions.  The  stores  are  offering  an  ever- 
increasing  selection  of  canned  goods,  which  are  consumed 
daily  and  are  always  bought  in  quantities  for  fiestas.  Recently 
the  importance  of  vegetables  has  increased  in  the  diet  of  the 
Filipinos  (see  Chapter  IV). 

Housing 

The  houses  in  cities  were  formerly  built  of  soft  stone ;  a 
few  modern  houses  are  now  being  constructed  of  stone,  brick, 
or  concrete,  with  tile  or  galvanized-iron  roofs.  The  houses 
of  the  rich  and  well-to-do  are  often  built  of  hard  woods, 
with  galvanized-iron  roofs.  Most  dwellings,  however,  are 
made  of  bamboo,  with  sides  and  roofs  of  nipa  thatch  or,  in 
inland  regions,  of  grass.  The  latter  may  be  called  the  Fili- 
pino or  nipa  houses.  The  proportion  of  these  dwellmgs 
differs  in  various  agricultural  communities.  In  Samar,  where 
much  property  was  destroyed  in  war  times,  nearly  all  the 
houses  are  nipa.  In  modern  rich  towns,  like  Pagsanjan,  in 
Laguna  Province,  the  number  of  wooden  houses  is  rather 
large.  Generally  speaking,  the  town  center  has  a  few  hard- 
construction  houses,  whereas  the  barrios  are  built  entu'ely 
with  bamboo  and  nipa. 

Nipa  houses  are  often  constructed  with  one  room;  many 
have  three  rooms,  some  five  or  six ;  probably  the  majority 
have  two.  In  view  of  tropical  requirements  for  health  and 
the  wealth  of  the  people  here,  these  are  ideal  houses  for  the 
Philippines.  According  to  the  Director  of  Health,  if  nipa 
houses  are  properly  constructed  with  sanitary  kitchen  and 
drains,  they  are  the  most  sanitary  dwellings  that  can  be  built 
in  the  Philippines.  The  old  houses  of  solid  masonry  retain 
dampness.  The  nipa  house  soon  becomes  dry.  The  well- 
ventilated  nipa  house  is  cool  and  less  apt  to  harbor  germs 
and  disease,  since  it  is  exposed  to  the  desiccating  air  currents 
and  the  germ-killing  power  of  sunlight.  The  chief  objection 
to  the  nipa  house  is  its  inflammability;  where  houses  are 
grouped  together,  whole  blocks  are  soon  burned.    The  fire  is 


292 


ECONOMIC  CONDITIONS 


usually  communicated  from  one  house  to  another  from  the 
roof ;  hence  the  government  is  offering  prizes  for  a  substitute 
for  nipa  roofing  which  will  be  cheap,  Hght  in  weight,  and 
yet  fireproof.  Cement  tiles  have  been  used  with  some 
success. 

The  problems  connected  with  Philippine  housing  can  be 
summarized  in  the  one  term  sanitation.  This  is  concerned 
with  the  ventilation  of  the  rooms,  the  disposition  of  sewage. 


ONE  TYPE  OF  PHILIPPL>^Z  HOUSES 


the  draining  of  lands  about  the  house,  the  water  supply,  and 
the  vending,  preparing,  and  eating  of  foods.  Lack  of  atten- 
tion to  these  matters  not  only  increases  the  death  rate,  but 
affects  the  physical  condition  of  the  people. 

According  to  official  statistics,  out  of  7910  deaths  in 
Manila  in  the  year  1917  there  were  1448  caused  by  tuber- 
culosis of  the  lungs.  This  death  rate  from  consumption  is 
i^proached  only  by  the  city  of  Calcutta.  Although  tuber- 
culosis is  most  prevalent  in  Manila,  it  is  widespread  in  the 
Philippines.  It  is  even  stated  that  there  is  scarcely  a  single 
family  which  has  not  one  member  a  victim  of  the  disease. 
Conditions  for  the  spread  of  tuberculosis  are  perfect  in  those 


TYPES  OF  PHILIPPINE  HOUSES 


294  ECONOMIC  CONDITIONS 

parts  of  the  Islands  in  which  there  is  overcrowding  in  unsani- 
tary houses  built  close  together  in  unsanitary  places.  More- 
over, the  free  access  of  air,  which  the  construction  of  the 
nipa  house  so  well  permits,  is  usually  shut  off  by  the  Filipino 
family,  since  windows  and  doors  are  closed  at  night.  Often 
as  many  as  ten  persons  sleep  in  one  room,  with  one  or 
several  individuals  suffering  from  advanced  pulmonary 
tuberculosis.^ 

Organized  efforts  to  combat  consumption  (antituberculosis 
work)  have  already  been  carried  on  in  Manila  for  some  time, 
and  are  now  taking  effect  in  the  provinces  tlirough  the 
schools  and  other  agencies,  chiefly  the  Antituberculosis 
Society. 

The  energy  of  the  government  has  heretofore  been  chiefly 
spent  in  combating  the  dangerous  communicable  diseases, 
cholera,  smallpox,  dysentery,  and  leprosy.  These  are  now 
held  in  check,  and  more  attention  can  be  given  to  the 
improvement  of  general  sanitary  conditions.  According  to 
the  Director  of  Health,  conditions  on  the  Islands  are  better 
than  they  have  been  at  any  time  in  the  last  fifty  years;  in 
comparison  with  other  countries  it  may  be  said  that  the 
Philippines  are  healthy.  By  means  of  quarantine  infectious 
diseases  have  been  kept  out ;  trained  health  service  has  been 
able  to  isolate  and  quarantine  infected  regions  within  the 
country.  Towns  and  cities  have  been  cleaned  up.  There  are 
now  a  thousand  artesian  weWs  in  the  Islands,  furnishing  pure 
drinking  water;  and  water  works  have  been  installed  in 
several  cities  and  towns.  Furthermore,  the  Filipinos  have 
changed  their  attitude  with  regard  to  sanitary  measures; 
for  where  formerly  they  hindered  the  health  oflicials,  they 
now  assist  them,  knowing  that  what  is  being  done  to  combat 
and  prevent  disease  is  being  done  for  their  own  welfare. 
Proper  medical  attendance,  which  has  been  lacking,  is  being 
provided  through  medical  schools. 

1  From  an  article  by  Drs.  W.  E.  Musgrove  and  A.  G.  Sison  in  Philippine 
Journal  of  Science,  Vol.  V,  No.  3. 


AGRICULTURAL  LABOR  295 


Clothing 

In  the  temperate  zones,  during  a  large  part  of  the  year, 
clothing  is  required  to  keep  warmth  in  the  body  and  protect 
it  from  dirt.  Clothing  in  the  tropics  has  the  latter  use  to  an 
even  greater  extent,  on  account  of  the  presence  of  a  greater 
number  of  bacteria ;  with  respect  to  temperature,  its  use  is  to 
protect  the  body  against  heat.  The  clothing  of  the  Filipino 
agricultural  laborers  is  now  well  suited  to  their  needs.  It  con- 
sists essentially  of  a  broad-brimmed  hat  and  of  an  upper  and 
lower  garment.  Professor  H.  D.  Gibbs,  from  his  investigations 
on  sunlight,  in  the  Philippine  Bureau  of  Science,  has  reached 
the  conclusion  ^  that  the  ideal  protection  for  the  body  in  the 
tropics  is  doubtless  an  umbrella,  under  which  the  subject  is 
constantly  in  the  shade,  and  the  radiation  and  evaporation  of 
perspiration  are  unobstructed  ;  and  that  it  is  remarkable  how 
the  broad  hat  and  scanty,  loose  garments  of  the  native  in  the 
tropics  approach  this  form  of  protection.  However,  good 
clothing  is  often  worn  for  the  pleasure  it  gives  the  wearer,  and 
the  requirements  of  the  Filipinos  have  increased  in  greater 
proportion  here  than  elsewhere.  The  Filipinos  as  a  race  desire 
to  appear  neat  and  well  dressed.  Hence  much  imported  cloth, 
such  as  drills  and  calicoes,  is  worn ;  the  use  of  shoes,  even 
among  the  agricultural  laborers,  is  now  rather  widespread ; 
where  a  few  years  ago  shoes  were  luxuries,  they  are  now 
necessities. 

Amusements 

Relatively  to  his  requirements  for  physical  well-being  the 
Filipino  laborer  has  greater  physical  pleasures  than  the  laborer 
in  America  or  in  Europe.  He  is  materially  better  off  than  the 
laborer  of  Porto  Rico  or  Java;  for  in  the  latter  countries  the 
great  pressure  of  the  population  places  before  the  poor  man 
the  unwelcome  choice  between  constant  toil  and  insufficient 

1  From  "  Original  Communications,  Eighth  International  Congress  of 
Applied  Chemistry,"  XX,  176. 


296  ECONOMIC  CONDITIONS 

nourishment.^  The  amusements  of  the  Filipino  may  be  enu- 
merated as  follows :  gambling  (at  cards  and  other  games,  and 
at  cockfights),  fiestas,  music,  dancing,  sipa  (a  game  played 
with  a  rattan  ball),  and  new  amusements  (such  as  phonographs, 
cinematographs,  and  the  like).  The  degree  to  which  these 
amusements  are  enjoyed  by  the  people  is  not  the  same  through- 
out the  Islands.  Mr.  Gil  Raval,  writing  from  Ilocos  Norte  in 
1910,  reports  as  follows: 

Their  amusement  is  almost  nothing.  Drinking  too  much  basi  or  wine 
at  a  wedding  or  christening  party,  and  dancing  and  singing  in  the  rice 
fields  during  rice  harvest,  are  regarded  by  them  as  their  most  enjoyable 
times  outside  of  Christmas  and  the  Fiesta  of  the  Patron  Saint  of  the 
town,  when  there  are  fireworks  and  "  moro-moro."  The  farmer's  wife 
has  another  kind  of  amusement.  It  is  her  great  delight  to  go  to  church 
on  holidays  and  to  market  on  market  days.  She  wears  her  Sunday 
dress,  and  on  her  head  puts  a  finely  woven  basket  full  of  vegetables 
and  other  things  to  be  sold  in  the  town.  With  the  money  she  will 
surely  buy  several  skeins  of  brightly  colored  cotton  thread  and  one  or 
two  coconuts.  Gambling  with  cards  is  unknown  to  these  people.  Cock- 
pits in  this  region  are  not  very  well  attended  by  farm  laborers  as 
compared  with  those  in  the  southern  provinces.  It  is  safe  to  say  that 
about  ninety-eight  per  cent  of  the  attendance  in  the  pits  here  consists 
of  those  town  people  who  follow  gambling  either  for  amusement  or  for 
their  living. 

The  following,  however,  describes  other  conditions : 

The  bulk  of  the  money  received  goes  for  ceremonials,  weddings,  bap- 
tisms, and  such  fiestas,  at  monte,  the  cockpit,  and  the  like. 

Cockfighting  is  not  a  sport  for  sport's  sake,  nor  even  for 
the  sake  of  seeing  blood  shed,  but  a  game  of  chance.  Cock- 
fighting,  cards,  and  lotteries  were  previously  encouraged; 
the  Filipino's  desire  for  games  of  chance  is  largely  a  question 
of  custom  and  inheritance.  It  is  widespread  among  all  classes. 
According  to  the  authorities  of  the  Hawaiian  Sugar  Planters' 
Association  the  Filipino  is  the  foremost  gambler  of  the  various 
peoples  there ;  out  of  the  one  hundred  and  thirty-six  convic- 
tions of  Filipinos  in  the  district  court  of  Honolulu  eighty-two 

1  Bulletin  No.  58y  Bureau  of  Labor,  Washington,  D.  C. 


A  Cockfight 


Athletic  Games 
OLD  AND  NEW  AMUSEMENTS 


298  ECONOMIC  CONDITIONS 

were  for  being  present  at  gambling  games.  The  ill  effects  of 
gambling  on  the  mental  and  moral  qualities  of  a  people  are 
marked.  The  effects  on  economic  conditions  are  just  as  great. 
The  desire  of  the  devotee  of  cockfighting  and  gambling  at 
cards  is  not  only  for  diversion,  but  for  money  easily  gained. 
His  hope  is  to  obtain  in  a  day  what  would  ordinarily  take 
months  or  years  of  drudgery  to  earn ;  often  to  win  freedom 
from  a  debt  which  holds  him  bound  to  the  land.  On  the  other 
hand,  gamblmg  is  often  the  very  cause  of  such  a  debt.  A  large 
population  dependent  on  gambling  for  a  living  offers  a  bad 
example  of  comfortable  idleness  to  the  productive  agricultural 
laborer.  In  addition  there  is  great  economic  waste  connected 
with  cockfighting  in  the  time  and  energy  spent  on  raising  and 
training  the  cocks  and  on  the  food  provided  them.  The  imme- 
diate effect  of  this  can  be  seen  in  the  inferior  condition  of 
Philippine  poultry  (see  Chapter  XIV).  As  early  as  Pigafetta's 
time  the  evil  effects  of  cockfighting  are  noted. 

The  sums  of  money  that  pass  hands  are  large  in  proportion  to  the 
means  of  the  gamesters.  It  is  evident  that  this  sort  of  diversion  demoral- 
izes more  and  more  a  people  which  is  of  itself  given  to  idleness  and 
vice,  and  which  is  easily  led  by  the  impressions  of  the  moment.  The 
people  cannot  resist  the  temptation  to  get  money  without  working  for 
it.  Many  load  themselves  with  debts  on  account  of  the  losses  which  they 
suffer ;  the  bandits  and  pirates  are  in  great  part  ruined  gamblers. 

Among  the  younger  generation  gambling  is  of  much  less 
importance  than  with  the  older  people  ;  even  among  the  latter 
it  has  decreased  because  of  the  sentiment  aroused  through 
schools  and  organizations,  and  because  of  laws  prohibiting 
lotteries  and  games  of  chance,  and  regulating  cockfighting. 
However,  people  must  have  amusements ;  if  one  is  taken 
away,  another  must  be  substituted.  Through  the  schools 
athletic  games  are  being  given  to  the  people ;  these  games 
will  in  time  probably  supersede  cockfighting,  while  better 
homes,  higher  standards  of  living,  and  widespread  social  life 
will  lessen  general  gambling.  Greater  economic  effort  and 
interest  in  production  will  diminish  the  amount  of  idle  time 


AGRICULTURAL  LABOR  299 

and  the  necessity  of  seeking  amusement.  It  is  noticeable  that 
least  gambling  is  reported  among  peasant  proprietors.  The 
adoption  of  baseball  by  the  younger  generation,  as  well  as 
the  interest  in  it  manifested  by  parents,  is  a  remarkable 
achievement;  throughout  the  Islands  the  effect  of  this  and 
of  field  sports  is  noted  in  the  decreasing  attendance  at  the 
cockpit.  Besides  substituting  a  clean  sport  for  cockfighting, 
athletics  will  improve  the  physical  condition  of  the  Filipinos, 
and  give  both  participants  and  spectators  an  idea  of  system 
and  of  unity. 

The  feasts  observed  by  the  Filipinos  are  both  public  and 
private.  They  occur  on  holidays  and  in  the  observation  of 
marriages,  christenings,  and  the  like.  When  such  ceremonials 
are  carried  to  the  extreme,  the  time  lost  may  be  considerable, 
and  the  amount  of  food  consumed  is  often  sufficient  to  feed 
a  family  for  several  months.  A  family  sometimes  spends  its 
entire  wealth  on  a  fiesta,  and  even  contracts  a  debt  at  heavy 
interest.  Recently  school  and  industrial  exhibits,  and  fairs, 
have  become  popular,  inasmuch  as  the  industrial  idea  has 
been  established. 

Many  forms  of  amusement  are  finding  a  place  in  the  Phil- 
ippines. Among  the  most  important  are  the  phonograph  and 
the  cinematograph,  both  of  which  are  now  recognized  the 
world  over  as  excellent  and  instructive.  There  are  few  large 
Philippine  towns  in  which  the  cinematograph  is  not  found. 

Summary 

The  standard  of  living  has  been  raised  much  in  the  last 
ten  years ;  this  is  perhaps  manifest  to  the  greatest  degree  in 
the  better  quality  and  the  greater  amount  of  clothing  used, 
and  in  the  higher  forms  of  amusements ;  the  careful  ob- 
server sees  advances  in  housing  and  food  also.  More  strong- 
construction  houses  are  being  built ;  sheet  iron  is  being 
substituted  for  nipa  roofing;  and  cement  houses  are  seen 
here  and  there.    There  is  greater  demand  for  tools,  cutlery, 


300 


ECONOMIC  CONDITIONS 


and  the  like.  More  furniture  is  found  in  the  houses.  Kero- 
sene lamps  have  been  substituted  almost  everywhere  for  the 
dim,  open  coconut-oil  lamps.  Pianos,  automobiles,  sewing 
machines,  and  clocks  are  common.  Chart  III  indicates  that 
the  Filipinos  are  actually  eating  more  rice  per  capita.  Chart 
XXXII   shows   that  in   the  years   from   1900   to   1917  the 


1900  1902  1904  1306  1908  1910  '  1912  1914  1916  1918 


PHILIPPINE  ISLANDS 

Increase  in  Imports  of  Luxuries 
in  Millions  of  Pesos 

Statistics  froni  Reports  of  the 
Collector  of  Customs 

/ 

\ 

/ 

/ 

\ 

/ 

\ 

/ 

4 

\ 

/ 

/ 

/ 

/ 

^^ 

/\ 

/ 

/ 

/ 

/ 

/ 

CHART  XXXIT.    INCREASE  IN  IMPORTS  OF  LUXURIES 


imports  of  what  had  been  luxuries  for  the  Filipinos  increased 
almost  tenfold.  1  During  the  same  period  the  total  imports 
only  trebled. 

This  elevation  of  the  standard  of  livitig  has  come  about 
(1)  through  greater  production  and  a  larger  portion  thereof 
received  by  the  laborer,  (2)  from  general  education,  (3)  as 

1  The  dates  and  the  articles  selected  preclude  the  possibility  that  the 
increase  in  these  products  is  consumed  by  the  foreign  population. 


AGFvICULTUKAL  LABOE  301 

the  result  of  travel,  and  (4)  from  the  example  of  returned 
travelers  and  strangers.  It  is  seen  in  all  classes,  but  chiefly 
in  the  middle  class  now  springing  up. 

EDUCATION  AND  TRAINING 

Walker  in  his  ''  Political  Economy  "  states  that  the  intelli- 
gent laborer  is  more  useful  than  the  unintelligent  for  the 
following  reasons : 

(a)  Because  he  requires  a  far  shorter  apprenticeship ;  he  can  learn  his 
trade  in  a  half,  a  third,  or  a  quarter  of  the  time  which  the  other  requires ; 
(J))  because  he  can  do  his  work  with  little  or  no  superintendence ;  he  is 
able  to  carry  instructions  in  his  mind,  and  to  apply  them  with  discretion 
tc  the  varying  conditions  of  his  work ;  (c)  because  he  is  less  wasteful 
of  materials ;  (d)  because  he  readily  learns  to  use  machinery,  however 
delicate  or  intricate.  Brains  are  not  alone  required  for  the  invention 
of  machines ;  they  are  required  for  their  adjustment,  their  ordinary 
use,  and  their  occasional  repair. 

The  Filipino  laborer  is  lacking  in  education  and  training. 
In  Hawaii  it  is  found  that  he  is  so  unaccustomed  to  work, 
and  is  so  ignorant  of  the  customs  and  conditions  found  there, 
that  it  requires  a  considerable  amount  of  time  to  train  him 
for  the  work  on  the  plantations.  In  the  Philippines  it  is  now 
recognized  that  the  laborer  accomplishes  a  good  day's  work 
if  he  is  intelligently  supervised,  but  that  he  requires  a  foreman 
to  keep  him  busy  and  show  him  what  to  do.  In  other  words, 
he  is  lacking  in  system.  The  reason  is  that  he  has  had  open 
to  him  few  kinds  of  activity  other  than  the  agricultural,  from 
the  most  primitive  times.  Therefore,  when  he  is  required  to 
do  work  which  needs  more  intelligence  and  the  use  of  modern 
implements,  he  is  at  first  inaccurate.  His  final  success  in 
competition  with  other  nationalities  in  the  Hawaiian  Islands, 
and  the  satisfaction  which  he  gives  not  only  on  modern 
estates  in  the  Philippines,  but  on  public  and -private  works, 
has  demonstrated,  however,  that  by  training  he  may  become 
an  effective  laborer. 


302  ECONOMIC  CONDITIONS 

Dignity  of  Labor 

The  ideas  of  a  people  as  to  dignity  of  labor  in  general  and 
of  certain  forms  of  labor  in  particular  are  not  the  same,  but 
are  principally  the  result  of  local  conditions.  This  is  evident 
in  the  case  of  the  Filipino.  The  older  generation  of  the  Fili- 
pino deemed  any  kind  of  physical  labor  a  lowering  of  social 
position,  an  idea  doubtless  obtained  from  medieval  standards 
during  the  colonization  of  the  Philippines.^  The  Filipino 
thought  himself  elevated  socially  when  he  was  able  either  to 
direct  manual  labor  without  doing  it  himself,  or  to  do  work 
which  did  not  soil  his  clothing.  Up  to  the  last  few  years 
almost  the  only  form  of  manual  labor  found  in  the  Philip- 
pines was  agriculture,  and  the  agriculturist  was  to  a  greater 
or  less  degree  bound  to  the  soil.  Thus  the  manual  laborer 
was  looked  down  on ;  indeed,  he  himself  fek  that  he  was 
inferior,  and  thought  that  if  he  could  acquire  enough  land 
to  live  without  labor  or  could  become  a  clerk,  his  position 
in  life  would  be  much  more  agreeable  and  his  class  higher.^ 
Soft  hands  and  soft  muscles,  and  a  life  of  ease  without  re- 
sponsibilities, were  the  end  to  be  attained.  Education,  policy, 
and  example  taught  this.  These  marked  the  "  illustrado,"  the 
man  of  dignity,  education,  and  affluence.  They  set  him  apart 
from  the  producers  of  wealth  as  a  person  to  be  respected 
and  perhaps  feared,  one  to  be  envied  and  imitated. 


1  To  obtain  an  idea  of  the  dignity  in  which  manual  labor  was  held  in 
Spain  during  the  time  of  its  greatest  influence  on  the  Philippine  character, 
Le  Sage's  "Gil  Bias"  should  be  read.  This  picaresque  romance  gives  an 
idea  of  conditions  existing  at  that  time. 

2  In  certain  countries  of  Europe  and  in  Japan,  where  the  feudal  system 
once  existed,  this  feeling  still  persists.  In  new  countries  such  as  the  United 
States  and  Australasia  manual  labor  is  not  looked  on  as  degrading,  nor  does 
the  farmer  or  mechanic  feel  himself  inferior  to  the  man  who  works  in  an 
office,  or  who  directs  others.  Greater  wealth  and  the  possibility  of  obtain- 
ing a  living  with  less  work  are  striven  for,  but  the  laborer  is  not  considered 
inferior,  nor  does  he  feel  inferiority.  This  condition,  the  willingness  to  sub- 
mit to  discipline,  and  an  equal  opportunity  to  advance,  are  the  foundation 
of  democracy. 


AGRICULTUEAL  LABOR 


803 


The  Filipino,  therefore,  has  considered  labor,  and  particu- 
larly manual  labor,  undignified.  It  is  interesting  to  note  the 
relative  dignity  which  he  attaches  to  the  different  kinds  of 
effort  open  to  him.  The  following  lists  are  the  result  of 
observations  made  by  different  persons : 


In  general 

1.  Lawyer  and  doctor. 

2.  Government  employee. 

3.  Merchant. 

4.  Big  landowner. 

5.  Independent  farmer. 

6.  Fisherman.    (Ranks  higher 
than  7  because  independent.) 

7.  Tenant  farmer. 

8.  Water  carrier. 

9.  Road    worker,    laborer    in 
general. 

10.  Street  cleaner. 

11.  House  servant,  "muchacho." 

In  Sorsogon 

1.  Office  worker. 

2.  Foreman. 

3.  Farm  worker. 

4.  Road  worker. 


5.  Pruning. 

6.  Abaca  stripping  (servant). 

In  Cehu 

1.  Official. 

2.  Teacher. 

3.  Clerk. 

4.  Farmer. 

5.  Fisherman. 

6.  Tuba  gatherer. 

7.  Servant. 

8.  Wood  vender. 

9.  Grain  vender. 

In  Moro 

1.  Sailor. 

2.  Diver. 

3.  Boat  builder. 

4.  Carpenter. 

5.  Agricultural  laborer. 


The  fact  that  the  Filipino  was  so  long  excluded  from  cleri- 
cal positions  has  given  to  these  an  enhanced  value  in  his  eyes. 
Nevertheless,  the  Filipino  really  prefers  agriculture  to  other 
kinds  of  manual  labor,  principally  because  he  has  always 
been  used  to  it.  Agricultural  labor  necessarily  has  little 
dignity  in  it  where  the  worst  phases  of  the  kasama  system 
exist ;  but  in  many  places  it  is  considered  honorable  when  in- 
dependent. Respectability  usually  rests  more  on  the  owner- 
ship of  land  than  on  anything  else,  and  a  family  tries  to 
belong  to  the  landholding  class  even  if  the  ownership  em- 
braces only  a  barren  hillside.  The  Filipino  prefers  agricultural 
work  not  only  because  he  is  used  to  it,  but  because  it  offers 


304  ECONOMIC  CONDITIONS 

him  greater  freedom  than  routine  work ;  it  allows  him  to 
work  in  the  early  morning  and  late  in  the  day,  and  to  rest 
during  the  heat  of  midday ;  it  is  often  nearer  his  home,  and 
by  having  no  boss  over  him  he  can  work  according  to  his  own 
inclinations.  The  Filipino  laborer  will  often  refuse  day  labor 
on  roads  or  other  constructions,  to  go  to  work  in  the  fields  at 
even  half  the  wages.  Some  forms  of  agriculture,  such  as  rice 
planting  and  harvesting,  seem  to  be  held  almost  in  venera- 
tion ;  in  places  it  has  been  practically  impossible  to  get  men 
to  do  any  other  kind  of  work  during  the  agricultural  season. 
In  the  last  few  years  the  Filipino's  ideas  of  manual  labor 
have  changed  greatly.  There  is  a  general  concurrence  in  this 
opinion  in  every  part  of  the  Islands.  This  change  has  un- 
doubtedly been  brought  about  by  democratic  examples,  by 
the  teaching  of  democratic  ideas,  and  by  the  greater  oppor- 
tunity and  measure  of  reward  offered  to  the  laborer.  In  the 
more  advanced  agricultural  regions  the  wealthier  farmers  and 
proprietors  are  not  a,shamed  to  be  seen  in  working  clothes 
superintending  the  farm  or  even  doing  work  on  it.  In  the 
schools  and  industrial  exhibits  the  dignity  and  the  value  of 
work  have  been  emphasized.  When  the  common  schools 
were  first  established  in  the  Philippines  under  the  American 
regime,  family  servants  often  carried  the  pupils'  books  to 
school.  Students  generally  expressed  great  distaste  for  any 
kind  of  industrial  work.  This  was  a  reflection  of  the  ideas 
of  their  parents  on  the  aims  of  education  and  the  dignity  of 
labor.  To-day,  however,  this  dislike  of  industrial  instruction 
is  not  evident  even  with  respect  to  such  forms  as  gardening 
and  growing  corn,  which  necessitate  work  in  the  soil.  The 
causes  responsible  for  the  almost  revolutionary  changes  in 
the  Filipino's  attitude  toward  manual  work  in  general,  and 
agriculture  in  particular,  may  be  enumerated  as  follows: 
(1)  change  from  the  medieval  to  the  American  point  of 
view ;  (2)  change  in  the  aims  of  education ;  (3)  industrial 
work;  (4)  inflow  of  capital,  giving  wider  opportunity  for 
employment  in  various  kinds  of  industrial  effort ;  (5)  greater 


AGRICULTURAL  LABOR  305 

protection  afforded  to  the  laborer  in  the  reward  for  his  labor ; 
(6)  increase  and  diversification  of  wants. 

Decrease  in  the  drudgery  of  agriculture  by  the  adoption  of 
better  methods  and  more  machinery  will  enhance  the  dignity 
of  this  occupation. 

Reward  for  Labor 
bonded  debtors! 

There  are  two  classes  of  persons  held  by  debt  in  the  Philip- 
pines, the  household  servants  and  the  ordinary  laborers.  The 
first  class  is  common,  and  usually  comprises  youths  of  both 
sexes  from  ten  to  twenty  years  of  age.  There  are  provinces 
and  parts  of  provinces  where  most  of  the  household  servants 
are  so  held ;  indeed,  it  is  a  common  way  of  holding  servants. 
The  second  class  includes  laborers  of  various  kinds,  such  as 
farm  hands,  cattle  herders,  gatherers  of  tuba,  and  watchers 
of  coconut  groves ;  even  sailors  are  included,  and  others  who, 
although  not  properly  household  servants,  may  be  called  on 
by  their  creditors  for  occasional  personal  service.  Such  laborers 
are  usually  mature  men  who  become  indebted. 

Generally  both  classes  of  debtors  are  unable  to  read  and 
write,  and  cannot  perform  simple  arithmetical  calculations ; 
the  second  class,  however,  being  older,  are  able  to  do  the 
simple  calculations  required  in  changing  money. 

The  debts  of  laborers  are  incurred  either  by  the  laborers 
themselves  or  by  their  parents.  The  debts  of  servants  are 
almost  always  incurred  by  the  parents.  There  are  various 
ways  by  which  a  parent  pledges  the  service  of  his  child  for 
debt.  The  simplest  one  is  where  he  borrows  money  from  a 
rich  man  on  the  security  of  the  labor  of  his  child,  who  serves 
in  the  house  of  the  creditor  till  the  principal  is  paid.  Another 
way  is  where  a  parent  already  in  debt  has  some  rich  man 
assume  it,  and  for  security  gives  his  child  to  be  held  until  he 

1  For  the  relation  between  the  share  system  and  bonded  debtors,  see 
page  249. 


306  ECONOMIC  CONDITIONS 

is  able  to  pay.  Sometimes  the  debt  is  inherited  by  the  son 
at  the  death  of  his  father.  Sometimes  a  man,  having  taken 
on  credit  more  goods  than  he  can  pay  for,  gives  his  child  to 
pay  his  debt.  It  is  a  certain  sense  of  honor,  and  reverence 
to  their  parents  impels  many  to  pay  off  such  debts. 

The  average  amount  of  the  debts  incurred  differs  in  the 
different  provinces ;  individual  debts  vary  even  more  widely. 
Generally  speaking,  they  range  from  five  to  a  hundred  pesos ; 
the  average  amount  in  the  Islands  is  probably  from  twenty  to 
thirty  pesos. 

Naturally  we  should  expect  the  debt  to  diminish  with  the 
length  of  service,  because  the  servant,  as  will  be  shown  later, 
often  receives  a  salary.  But  in  many  cases  the  debt  increases 
in  spite  of  the  monthly  deductions  for  salary,  either  because 
new  loans  are  made  or  because  the  servant  is  charged  for 
clothing  given  to  him,  and  usually  also  for  articles  lost  or 
broken  by  him.  From  some  of  the  accounts  kept  by  the 
creditor  it  would  seem  well-nigh  impossible  to  pay  off  a  debt 
with  service,  since  the  reward  for  such  service  is  small.^ 

^  Copy  of  the  original  account  of  a  servant  who  began  service  on 
February  1,  1911,  at  3  pesos  a  month: 

Took  cash P  10.00 

Took  cash 2.00 

Took  1  hat 1.25 

Took  cash .50 

Took  cash .50 

Total P  14.25 

Salary  for  3  months 9.00 

Debt  increase 5.25 

Took  cash P5.50 

Took  1  pantalon  drill 1.20 

Took  1  patadion 2.50 

Took  1  pieza  sinemay 2.00 

Total P  16.45 

Salary  for  5  months 15.00 

Debt  increase      . 1.45 

Oct.  8.         Took  two  cavans  palay 5.00 

Took  cash 3.00 

Took  cash .50 

Took  cash 3.00 


Feb.  1. 

Feb.  20. 

March  15. 

April  4. 

April  20. 

April  30. 

June  3. 

June  22. 

Aug.  27. 

Sept.  14. 

Sept.  30. 

AGRICULTURAL  LABOR  307 

The  household  servants,  as  a  rule,  do  not  get  a  regular  sti- 
pend. They  are  given  their  food  and  usually  the  cast-off  cloth- 
ing of  the  creditor's  family.  Occasionally  they  receive  some 
spending  money  during  a  fiesta.  Some  creditors  charge  them 
for  clothing;  but  others,  especially  the  rich,  do  not.  Those 
who  get  a  regular  salary  are  given  very  little,  from  half  a 
peso  to  three  pesos  a  month.  This  amount  is  generally  less 
than  that  given  to  nonbonded  servants,  who  get  from  four 
to  seven  pesos  a  month. 

The  treatment  of  household  servants  differs  with  different 
creditors.  As  a  general  rule,  they  are  treated  as  inferiors,  but 
nevertheless  their  lot  is  not  grievous.  They  are  usually  better 
off  with  their  masters  than  they  would  be  by  themselves, 
because  their  physical  needs  are  satisfied,  and  they  do  not 
become  public  charges.  Those  who  have  reported  on  the 
subject  make  the  same  general  observation,  that  indebted 
servants  abound  in  those  regions  where,  on  account  of  the 
density  of  population,  conditions  of  living  are  hard  and  a 
chronic  state  of  poverty  exists.  Of  course  we  must  recognize 
that  there  are  individual  attitudes  toward  the  servant  class. 
There  are  some  creditors  who  chastise  their  servants  regularly, 
and  for  slight  mistakes ;  there  are  those  who,  by  means  of  in- 
correct accounts,  try  to  keep  their  servants  in  debt  for  longer 
periods  of  time  than  necessary.  On  the  other  hand,  many 
creditors  treat  their  servants  kindly,  although  as  inferiors ; 
some  treat  them  as  members  of  the  household,  and  give  them 
a  chance  to  improve  their  conditions.  It  is  even  reported  that 
an  unusual  number  of  masters  help  their  servants  in  marriage 
by  giving  them  either  a  house  or  a  piece  of  land  to  cultivate. 

Several  causes  hold  these  servants  to  their  lot.  In  the  case 
of  children  pledged  by  their  parents  the  chief  cause  is,  of 
course,  parental  authority.  This  is  probably  the  most  potent 
force  that  keeps  them  in  practical  bondage.  A  second  cause, 
especially  in  the  case  of  those  whose  debts  were  self-incurred, 
is  the  difficulty  of  getting  a  living,  already  alluded  to.  Again, 
custom  plays  an  important  part,  and  is  reported  to  be  one  of 


308 


ECONOMIC  CONDITIONS 


the  cliief  forces  that  hold  bonded  servants.  Moreover,  in  many- 
cases  the  servants  believe  themselves  to  be  held  by  legal  bond. 
It  is  seldom  that  a  written  contract  is  made ;  in  many  cases 
where  none  exists  the  servants  are  nevertheless  made  to  be- 
lieve that  they  are  held  legally.  Other  forces,  such  as  shame 
and  a  certain  sense  of  honor,  have  been  reported,  but  prob- 
ably loyalty  would  describe  better  the  feeling  which  binds 
many  servants  to  their  masters.  If  we  look  only  at  the  sur- 
face, we  are  shocked  to  find  the  existence  of  a  servant  class 
that  is  practically  in  bondage ;  however,  our  feeling  is  modi- 
fied when  we  understand  the  close  personal  relationship 
which  takes  the  form  of  protection  on  the  part  of  the  master, 
and  loyalty  on  the  part  of  the  servant. 

Bonded  debtors  as  described  here  are  disappearing  in  a 
good  many  communities ;  there  are  fewer  of  them  to-day  than 
during  the  Spanish  administration.^ 

The  following  is  a  list  of  some  Filipino  names  for  bonded 
debtor  and  interest: 


Dialect 

Bonded  Debtor 

Interest 

Tagalog 

Pampanga 

Bicol 

Misamis     .     .     .     .     .     . 

Visaya 

alila,  bataan,  alipan, 
muchacho,  propis 

magipus 

bataan,  uripen,  para 
utang,  prenda,  recibo 
prenda,  hipoteca 
olipen,  sologo-on,  su- 
lugo,  utangan,  bina- 
tonan 

patubo,  upa  sa  salapi, 
pakinsbang,  tube,  baba, 

i uteres 
tubu 

halaga,  tube,  pagpagan- 
ancia,  interes,  per  ciento 
tube,  saca 
dihap,  tube,  patubo,  saca 

pasaca 

REWARD  AND  INCENTIVE  TO  LABOR 

The  Malayan  idea  of  incentive  to  work  has  been  debt 
and  fear.  The  modern  idea  is  greater  dignity  and  reward.  It 
is  obvious  that  bonded  debtors  have  no  incentive  to  labor. 

1  The  data  on  bonded  debtors  were  turned  over  to  Conrado  Benitez,  In- 
structor in  Economics,  University  of  the  Philippines,  who,  with  the  help  of 
additional  information  collected  by  him,  wrote  the  above  discussion. 


AGKICULTURAL  LABOR  309 

Their  position  does  not  improve  with  greater  effort  on  their 
part.  Tlieoretically  speaking,  the  various  Philippine  agri- 
cultural classes  can  be  graded  as  follows  with  respect  to 
their  reward  and  its  effect  on  incentive  to  labor:  (1)  bonded 
debtors  ;  (2)  wage  workers ;  (3)  share  workers  and  share  ten- 
ants; (4)  peasant  proprietors.  However,  other  conditions  must 
be  taken  into  consideration,  especially  the  education  and  char- 
acter of  the  laborer,  and  the  attitude  of  the  employer  toward 
him.  The  share  system  offers  no  incentive  where  exorbitant 
rates  of  interest  hold  the  tillers  of  the  soil  practically  inden- 
tured to  it.  The  laborer  for  daily  wage  is  not  efficient  if  held 
in  the  same  manner,  or  if  not  imbued  with  sufficient  honor  to 
give  equivalent  labor  for  his  wage.  Even  the  peasant  pro- 
prietor may  be  a  relatively  inferior  producer  if  false  pride  in 
his  position  as  landholder  and  the  love  of  gambling  draw  him 
away  from  the  land.  In  all  these  points  the  Filipino  agricul- 
tural laborers  differ,  not  only  individually,  but  by  groups  and 
according  to  customs  and  conditions  in  various  regions. 

In  general,  however,  the  Filipino  has  lacked  incentive  to 
labor  because  he  has  not  received  the  rightful  share  of  his 
production,  and  has  not  been  protected  in  his  property.  Small 
return,  lack  of  security,  and  apathy  of  the  government  toward 
industry  contributed  not  a  little  to  foster  indolence.  Greater 
effort  did  not  result  in  greater  reward.  The  laborer  could  be 
deprived  of  his  savings  in  many  ways.  The  possession  of 
much  wealth  carried  certain  dangers  with  it.  Hence  the 
Filipino  lacked  incentive  to  earn  more  than  the  bare  neces- 
sities, and  came  to  feel  that  only  by  immediately  consuming 
them  could  he  enjoy  the  results  of  his  labor.^ 

Unlike  the  working  classes  in  Europe  and  the  United  States, 
where  harder  conditions  of  living  exist,  the  Filipino  workers 
cannot  be  driven  by  the  scourge  of  necessity  to  sustained  indus- 
trial activity ;  hence  the  relation  between  reward  and  efficiency 
is  especially  important  here. 

^  The  writings  of  Jos^  Rizal  may  be  consulted  on  this  point,  that  the  in- 
dolence of  the  Filipino  results  from  lack  of  incentive  to  labor. 


310  ECONOMIC  CONDITIONS 

Numerous  instances  may  be  cited  in  which  it  has  been 
proved  that  the  greater  the  FiKpino's  incentive  to  work,  the 
better  laborer  he  becomes.  Small  piece  contractors  on  local 
railroads  show  twice  as  much  efficiency  as  day  laborers.^  In 
the  Hawaiian  Islands  the  Filipino  contract  laborers  in  cane 
cutting,  and  contractors  who  cultivate  a  piece  of  ground  and 
sell  the  product  to  plantations,  earn  more  than  the  day  labor- 
ers. Furthermore,  sugar  planters  there  say  that  although  the 
Filipinos  do  not  work  regularly  in  the  beginning,  yet  after 
the  first  money  is  spent  for  fancy  clothes  and  ornaments 
instead  of  for  the  necessities  of  life,  they  usually  settle  down 
to  regular  work,  earn  more  than  enough  to  live  comfortably, 
and  increase  in  efficiency. 

With  better  education,  with  the  knowledge  that  he  will  be 
protected  in  the  reward  of  his  labor,  with  greater  and  higher 
wants,  the  law  of  increased  efficiency  with  increased  reward 
will  apply  to  the  Filipino  even  more  than  it  does  now. 

Mobility  of  Labor 

The  demand  for  labor  in  agriculture  varies  with  the  season  ; 
it  is  greatest  at  the  seasons  of  planting  and  harvesting.  The 
degree  to  which  this  demand  is  supplied  depends  on  the  mobil- 
ity  of  labor.  In  the  United  States,  for  instance,  there  is  an 
exodus  of  workers  from  the  city  to  the  farm  and  the  orchard 
during  the  harvest  seasons,  and  a  movement  of  laborers  from 
south  to  north  as  the  crops  mature.  In  Ceylon  there  is  a 
seasonal  movement  to  the  tea  plantations  from  India. 

Such  seasonal  labor  movements  occur  in  the  Philippines  also. 
Within  given  regions  they  often  take  place  from  town  to  town  ; 
one  town  plants  a  kind  of  rice  which  matures  early,  another 
a  kind  which  is  harvested  late ;  and  so  the  harvest  occurs  at 
intervals.  In  such  regions  many  persons  move  from  town 
to  town  to  help  in  the  harvest.  When  the  crop  is  short  in  any 
one  place,  an  especially  large  number  of  persons  participate 

1  Report  of  the  Philippine  Commission,  1907,  p.  1021. 


PHILIPPINE  ISLANDS 

MOBILITY  OF  LABOR 

H  Regions  from  which  seasonal 

^  labor  is  drawn 

^  Regions  to  which  seasonal 

^  labor  goes 

(Data  from  Economic  Reports, 
Bureau  of  Education 
inil-1912} 


N.  (Form 
1      U         *, 


Fonnosa 


CHART  XXXIII 


312  ECONOMIC  CONDITIONS 

in  the  exodus  from  it  to  the  rice  fields  of  more  fortunate 
regions.  These  people  often  belong  to  the  small  floating  popu- 
lation which  goes  from  barrio  to  barrio  as  work  demands,  but 
most  of  the  harvesters  are  permanent  residents  of  some  one 
locality.  Hence  the  ill  effects  of  this  system  can  be  seen  (1)  in 
the  temporary  abandonment  of  home  and  domestic  animals 
(whole  barrios  are  often  deserted),  (2)  in  time  lost  in  trav- 
eling, and  (3)  in  loss  in  education  of  children  taken  from 
school.  Yet  such  an  influx  of  laborers  is  often  necessary  for 
the  harviesting  of  the  rice  crop ;  in  densely  populated  districts 
the  added  supply  of  rice  so  obtained  is  very  important. 

There  are  also  several  large  areas  in  which  the  labor  supply 
for  the  harvest  is  deficient,  and  definite  regions  from  which 
labor  is  commonly  drawn  to  them.  Such  regions  are  shown 
on  Chart  XXXIIL 

The  character  of  the  migration  from  Panay  and  Cebu  to 
the  sugar  fields  of  Negros  has  already  been  discussed  in  the 
chapters  on  sugar  and  land  tenure.  The  migration  involves 
several  thousand  men,  usually  not  accompanied  by  their  fam- 
ilies. Most  of  these  are  rice  farmers,  who  leave  after  the 
harvest  and  return  for  planting,  a  period  from  November  to 
March.  Many  go  back  to  their  homes  as  poor  as  they  left 
them,  or  with  only  better  clothing.  Some  have  saved  money 
for  the  purchase  of  land  or  work  animals.  This  differs  from 
other  movements  chiefly  in  that  the  laborer  is  under  contract 
and  works  for  a  wage. 

There  is  also  a  migration  from  parts  of  Batangas  to  San 
Pablo,  in  Laguna  Province,  and  to  Tayabas  Province,  where 
the  laborers  work  in  the  coconut  groves. 

The  other  great  seasonal  labor  migrations  indicated  on  the 
map  are  in  connection  with  rice  harvests.  The  most  impor- 
tant of  these  is  that  of  Ilocanos  to  the  central  Plain  of  Luzon 
(the  provinces  of  Pangasinan,  Tarlac,  and  Nueva  Ecija).  This 
migration  occurs  from  December  to  April.  Rice  matures  early 
in  the  Ilocano  provinces ;  after  the  harvest  hundreds  of  fam- 
ilies journey  south  in  groups,  some  walking  and  camping, 


AGRICULTURAL  LABOR  313 

others  going  by  sailboat.  They  harvest  rice  for  one  fifth  of 
the  crop.  Some  convert  their  share  into  money,  but  most 
of  them  return  by  boat  with  the  rice.  Many  take  cloths  woven 
in  their  homes  or  in  their  locality  and  dispose  of  them  to  the 
people  of  the  Plain.  The  Ilocanos  are  the  most  mobile  of  all 
Filipino  peoples. 

Harvest  by  outsiders  is  not  always  to  the  economic  advan- 
tage of  the  owners  of  small  rice  fields,  but  custom  permits 
anybody  to  help  in  the  harvest  for  a  share  of  the  crop.  The 
ill  effect  of  the  large  share  given  to  the  harvesters  has  already 
been  explained  (Chapter  II). 

Lack  of  mobility  of  labor  in  certain  regions  of  the  Islands 
may  be  accounted  for  by  the  antipathy  of  the  people,  and 
by  the  debt  system,  which  holds  them  to  the  locality.^  The 
establishment  of  peace  conditions,  the  construction  of  rail- 
roads, and  in  general  the  improvement  in  means  of  communi- 
cation tend  to  increase  the  mobility  of  labor.  This  is  noted 
in  all  parts  of  the  Philippines. 

Plantation  Labor 

The  discussion  of  agricultural  labor  as  presented  in  Chap- 
ters XII  and  XIII  is  from  the  point  of  view  of  the  country 
as  a  whole,  and  with  respect  to  systems  of  agricultural  organi- 
zations now  extant.  Investment  of  foreign  capital  in  Philip- 
pine agricultural  enterprises  has  usually  taken  the  form  of 
plantations  on  which  a  supply  of  efficient  labor  must  be 
established  and  maintained.  The  increasing  number  of  such 
plantations  makes  the  question  of  an  effective  supply  of 
labor  extremely  important.  Early  during  the  American  occu- 
pation it  was  recognized  that  such  a  supply  did  not  exist  here, 
and  the  admittance  of  Chinese  coolie  labor  was  agitated.  As 
a  result,  such  labor  was  excluded  by  law  from  the  Philip- 
pines, chiefly  for  the  following  reasons :  (1)  the  natives  object 

1  This  question  is  taken  up  at  length  under  the  heading  Density  of 
Population  in  Chapter  XVII. 


r 


814  ECONOMIC  CONDITIONS 

to  the  Chinese ;  (2)  the  Chinese  seldom  remain  primary- 
producers  for  any  length  of  time;  (3)  the  Chinese  become 
a  commercial  class,  driving  native  and  white  merchants  out 
of  business.  Since  the  passage  of  the  exclusion  law,  there 
has  been  suggested  the  possibility  of  bringing  in  indentured 
coolie  laborers  under  contract  to  leave  the  country  at  the  end 
of  their  term  of  service.  In  view  of  the  fact  that  such  systems 
have  been  recently  repudiated  in  countries  which  have  used 
them,  such  action  would  be  a  distinct  step  backward.^ 

Plantation  labor  here  must  therefore  be  Filipino.  Much 
doubt  was  at  first  expressed  as  to  whether  Philippine  agri- 
cultural laborers  would  ever  be  efficient  enough  for  planta- 
tion purposes.  In  view  of  experience  with  them  on  various 
plantations  now  established  here,  and  their  success  in  com- 
peting with  the  laborers  of  other  nationalities  on  the  planta- 
tions of  the  Hawaiian  Islands,  it  appears  that  the  Filipinos 
make  efficient  resident  plantation  laborers  if  they  are  paid  a 
just  wage,  are  well  housed  in  villages  under  attractive  sur- 
roundings, are  provided  with  amusements,  are  superintended 
by  overseers  who  understand  them,  are  assured  of  the  receipt 
of  the  total  wage  earned,  and  in  general  are  treated  with  justice. 
The  use  of  a  bonus,  share,  or  piece  system  is  also  efficacious.^ 

The  creation  of  a  supply  of  resident  labor  on  a  modern 
plantation  is,  of  course,  imperative.  The  measure  of  success 
which  the  Filipino  laborer  has  attained  in  the  Hawaiian 
Islands  and  the  cause  of  it  may  be  understood  from  the 
following  extracts :  ^ 

Filipino  immigration  to  Hawaii  was  started  in  a  small  way  in  Decem- 
ber, 1906,  between  which  time  and  December,  1907,  approximately 

1  For  a  discussion  of  this  point,  see  any  United  States  text  on  colonial 
government.  "The  History  of  Colonization"  (published  by  the  Bureau  of 
Education,  Manila),  Chapter  XVI,  may  be  reviewed. 

2  The  question  of  the  supply  of  such  labor  and  the  regions  from  which  it 
can  be  drawn  is  taken  up  under  the  heading  Mobility  of  Labor  (page  310) 
and  in  the  treatment  of  emigration  in  Chapter  XVII. 

2  These  extracts  were  taken  from  a  communication  received  from  the 
Hawaiian  Sugar  Planters'  Association,  Bureau  of  Labor  and  Statistics,  in 


AGRICULTURAL  LABOR  315 

200  Filipinos  were  brought  in.  In  May,  1909,  recruiting  operations 
were  again  commenced,  and  from  July,  1909,  to  September  30,  1912, 
approximately  10,400  arrived.  On  October  31,  1912,  our  plantation 
pay  rolls  showed  that  there  were  6724  men,  50  women,  and  29  minors 
regularly  employed.  Of  these,  2  men  were  working  as  skilled  men,  5130 
working  as  day  laborers,  1291  working  as  contractors,  and  301  working 
as  profit-sharing  planters. 

Day  laborers  receive  wages  at  the  rate  of  $20  a  month  of  26  days  of 
10  hours  each,  plus  overtime,  and  extra  compensation  for  Sunday  work 
when  required.  They  are  also  entitled  to  a  bonus  on  their  yearly  earn- 
ings, if  they  have  averaged  240  days'  labor  for  the  year  on  the  same 
plantation,  at  a  rate  based  on  the  New  York  prices  of  sugar.  During 
the  last  year  this  bonus  amounted  to  13  per  cent,  and  partial  returns 
from  35  plantations  show  that  841  Filipinos  received  $15,487.02,  an 
average  of  $18.42. 

Contractors  are  gangs  of  men  who  undertake  certain  specific  planta- 
tion operations,  such  as  cultivating  fields  of  cane,  cutting,  loading,  and 
the  like,  and  are  paid  so  much  per  ton  of  cane.  Contractors  receive  a 
considerably  larger  amount  than  ordinary  field  laborers,  ordinarily 
earning  from  $26  to  $35  or  $40  a  month. 

Profit-sharing  planters  are  those  who  take  over  portions  of  land  and 
raise  cane  for  sale  to  the  plantations.  These  men  also  receive  consider- 
ably higher  amounts  than  day  laborers. 

In  addition  to  wages  all  laborers  are  furnished  free  of  cost  with  com- 
fortable houses,  firewood,  water  for  domestic  purposes,  and  medical  and 
hospital  attendance. 

Comparatively  few  of  the  Filipinos  coming  to  Hawaii  have  pre- 
viously been  accustomed  to  continued  or  systematic  work,  and  their 
development  into  satisfactory  laborers  involves  time,  patience,  and  care- 
ful supervision.  I  think,  however,  that  they  compare  favorably  with  the 
initial  immigrants  of  other  nationalities. 

At  first  many  of  them  do  not  work  regularly,  and  we  have  noticed 
a  tendency  after  the  first  pay  day  to  lie  off  and  spend  the  money  earned, 
much  of  it  going  for  fancy  clothes  and  adornments,  rather  than  for  the 
necessaries  of  life.  After  the  first  money  earned  is  spent,  they  are  more 
apt  to  settle  down  to  regular  work.  After  finding  that  they  can  earn  more 
than  enough  to  live  comfortably,  and  that  they  can  make  some  saving, 
the  majority  of  them  increase  in  efficiency.  Recently  a  good  many  of 
them  have  been  returning  to  the  Philippines,  paying  their  own  passages, 
with  considerable  sums  of  money  saved  up. 

answer  to  a  schedule  of  questions.  It  must  be  remembered  that  the  report 
was  made  on  Filipinos  in  competition  with  labor  from  practically  all  coun- 
tries from  which  contract  labor  can  be  brought  into  the  Philippines. 


316  ECONOMIC  CONDITIONS 

At  first  the  Filipinos  are  not  capable  of  doing  the  heavier  work  on  the 
plantation,  and  so  far  few  of  them  have  taken  the  heavy  loading  eon- 
tracts  ;  in  the  other  kinds  of  plantation  work  they  are  gradually  taking 
their  places,  even  in  the  mills ;  those  who  are  doing  contract  work  are, 
of  course,  above  the  average  in  efficiency. 

The  motives  causing  Filipinos  to  come  to  Hawaii  are  difficult  to 
designate,  since  they  probably  vary  in  different  cases.  My  impression  is, 
however,  that  a  desire  for  a  change  and  a  prospect  of  bettering  their 
positions  are  probably  the  chief  motives.  .  .  .  This  office  has  no  accurate 
knowledge  of  the  number  engaged  in  other  gainful  occupations.  Many 
of  the  Filipinos  are  working  for  the  Federal  Government  in  construct- 
ing the  dry  dock,  as  stevedores,  as  yard  and  house  boys,  and  in  the 
pineapple  industry.  .  .  . 

Although  the  beginning  of  any  immigration  naturally  has  its  draw- 
backs and  discouragements,  and  there  are  many  exceptions  to  the  gen- 
eral rule,  our  Association  has,  on  the  whole,  found  it  worth  while  to 
encourage  the  coming  of  Filipinos.  The  majority  of  them  have  never 
been  accustomed  to  work,  come  poorly  clothed,  ill-fed,  and  ignorant 
of  our  customs  and  conditions,  and  it  requires  a  considerable  amount  of 
time  for  the  proper  building  up  of  their  bodies,  and  training  them  for 
the  work.  When  this  is  done,  however,  the  majority  prove  fairly  steady 
and  efficient  workers,  and  seem  willing.  The  average  man  is  not  unruly, 
and  all  comply  .with  camp  sanitary  requirements.^ 

The  experiences  of  large  Philippine  plantations,  such  as  the  San  Jos6 
and  the  Calamba  Sugar  Estates  prove  that  the  Filipino  agricultural 
laborer  is  efficient  when  satisfactory  conditions  of  living,  working,  and 
remuneration  are  maintained. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  The  dependence  of  the  economic  position  of  the  Philippines 
on  its  agricultural  labor. 

2.  The  village  system  of  the  Philippines.  Why  it  developed. 
3.  Philippine  regions  in  which  scattered  farms  are  the  rule.  How 
these  developed.  4.  Will  the  village  system  persist  ?  Give  reasons. 
5.  Points  in  favor  of  and  against  the  village  system. 

6.  Labor  in  common.  Examples  from  the  Philippines  and 
other  countries.  7.  Is  it  being  less  used  in  the  Philippines  ?  Why  ? 

1  In  1918  more  than  2700  Filipino  laborers  went  to  Hawaii,  most  of  them 
from  Cebu,  the  Ilocos  provinces,  and  Oriental  Negros.  Fewer  than  1000 
laborers  returned  from  Hawaii  that  year. 


AGRICULTUKAL  LABOR  317 

8.  Explain  the  relation  between  group  labor  and  the  modern 
mutual-insurance  company.  9.  Explain  the  difference  between 
health,  accident,  life,  fire,  marine,  and  fidelity  insurance.  10.  Mutual- 
benefit  and  benevolent  societies  in  the  Philippines. 

11.  Three  points  with  respect  to  efficiency  of  labor.  12.  Should 
the  efficiency  of  the  Filipino  increase  ?  Why  ? 

13.  Plans  for  improvement  in  the  standard  of  living  of  the 
Filipinos.    14.  Public  libraries,  the  reading  habit,  and  gambling. 

15.  The  relation  between  reward  for  labor  and  efficiency  of 
labor,  as  noted  among  different  kinds  of  agricultural  laborers  in 
the  Philippines. 

16.  In  1918  retail  prices  on  the  principal  articles  of  consump- 
tion, such  as  rice,  flour,  and  cotton  cloth,  were  about  one  hundred 
per  cent  higher  than  in  1913.  Wages  increased  about  fifty  per 
cent.  Were  laborers'  wages  really  increased  or  not  ?  Explain. 
17.  Explain  how  the  real  wages  of  an  abaca  stripper  depends  on 
the  price  for  different  grades,  and  on  the  time  and  effort  required 
to  produce  a  kilo  of  each. 

18.  Change  in  the  ideas  with  respect  to  dignity  of  labor  that 
has  been  effected  in  the  Philippines  during  the  past  twenty 
years. 

19.  By  Act  2782  the  Philippine  Legislature  has  provided 
funds  which  will  assure  every  Filipino  an  intermediate  education. 
What,  in  your  opinion,  will  the  effect  of  this  step  be  on  (a)  advance 
in  agriculture,  (b)  the  system  of  scattered  holdings,  (c)  the  size 
of  cultivated  holdings,  (d)  the  condition  of  the  aparcero,  or  tenant 
on  shares,  (e)  the  increase  in  the  number  of  peasant  proprietors, 
(/)  on  homesteads,  (jj)  the  efficiency  of  labor,  (h)  the  reward  of 
labor,  (i)  the  dignity  of  labor  ? 

20.  Agricultural  industries  of  the  Philippines  that  require 
seasonal  labor.    21.  Regions  from  which  it  is  drawn. 

22.  You  are  about  to  establish  a  sugar  plantation  in  Occidental 
Negros.  Should  you  prefer  to  rely  on  seasonal  labor  or  on 
permanent  laborers  ?  23.  What  steps  will  you  take  to  keep 
your   laborers   permanently   on   the   plantation  ? 

24.  Explain  the  difference  between  "  production  per  man ''  and 
^'  production  per  hectare,"  and  illustrate  your  data  by  references 
to  various  countries  in  the  world.  (See  Miller  and  Policy's 
"  Intermediate  Geography.") 


318 


ECONOMIC  CONDITIONS 


25.  The  following  is  an  extract  from  a  paper  published  in  1919 : 

In  the  Philippines  the  mortality  rate  among  persons  more  than  five 
years  of  age  is  the  same  as  in  the  United  States,  but  under  that  age 
there  are  three  deaths  for  one  in  America.  This  terrible  condition  is 
being  considered  by  the  Council  of  State  with  a  view  to  reducing  the 
infant  mortality. 

What  suggestions  on  this  could  you  offer  to  the  Council  of  State  ? 

26.  Show  that  the  standard  of  living  in  the  Philippines  has 
increased  with  respect  to  (a)  the  amount  of  food  eaten,  (h)  the 
quality  and  diversity  of  food  consumed. 

27.  In  August,  1919,  certain  men  of  Manila  jwesented  a  peti- 
tion to  the  mayor,  requesting  that  a  law  be  passed  abolishing 
"  panguingue"  in  the  city,  stating  that  women  neglect  their  homes, 
their  babies,  and  their  hungry  husbands,  and  that  most  of  the 
earnings  of  the  tired  and  hungry  husbands  are  lost.    Comment. 

28.  From  the  following  table  of  health  statistics  for  the  Philip- 
pines determine  the  average  annual  increase  of  population  in  the 
Philippines  for  the  ten  years  before  1918 : 


Health  Statistics  of  the  Philippine  Islands  from  1904  to  1917 
[Source :  Philippine  Health  Service] 


Year 

Philippine 

Health 

Service's 

Estimate  of 

Population 

Births 

Deaths 

Number 

OF 

Deaths 

per  100 

OF  Births 

Number 

Per  1000 

Number 

Per  1000 

1904.    . 

7,765,228 

216,176 

27.839 

146,921 

18.920 

67.964 

1905.    . 

7,897,237 

244,586 

30.971 

166,555 

21.090 

68.097 

1906.    . 

8,031,490 

215,296 

26.806 

143,284 

17.840 

66.552 

1907.    . 

8,168,025 

258,010 

31.588 

138,464 

16.952 

53.666 

1908.    . 

8,306,881 

278,369 

33.511 

190,495 

22.932 

68.433 

1909.    . 

8,448,098 

243,726 

28.850 

179,355 

21.230 

73.589 

1910.    . 

8,591,716 

290,210 

33.778 

191,576 

22.298 

66.013 

1911.    . 

8,737,775 

302,855 

34.660 

188,412 

21.563 

62.212 

1912.    . 

8,886,317 

290,995 

32.746 

185,185 

20.839 

63.639 

1913.    . 

9,037,385 

316,056 

34.972 

154,086 

17.050 

48.753 

1914  .    . 

9,191,020 

347,337 

37.791 

163,943 

17.837 

47.200 

1915.    . 

9,347,267 

327,206 

35.006 

176,313 

18.863 

53.884 

1916.    . 

9,506,170 

336,328 

35.380 

190,430 

20.032 

56.620 

1917.    . 

9,667,774 

350,002 

36.203 

209,444 

21.664 

59.841 

AGRICULTURAL  LABOR 


319 


29.  The  Manila  Merchants'  Association  has  furnished  figures 
on  fourteen  of  the  principal  articles  of  necessity,  showing  the 
percentage  of  increase  between  the  years  1913  and  1919.  Four 
articles  of  food  (Hour,  rice,  salmon,  and  condensed  milk)  show  an 
average  increase  of  214  per  cent,  whereas  in  the  case  of  clothing 
and  cotton  goods  the  average  increase  on  nine  articles  is  177  per 
cent,  etc.  The  following  is  a  copy  of  the  table  indicating  the 
increases  : 


Food 


1913 


1919 


Percentage 

OF  iNCKEASE 


Flour,  per  bag  .... 
Rice,  per  cavaii  .  .  . 
Salmon,  per  case  .  .  . 
Condensed  milk,  per  case 


P3.00 
5.00 
6.50 
8.00 


P7.00 
17.50 
23.50 
25.00 


133 
250 
261 
212 


(Average  increase  on  the  four  articles  of  food,  214  per  cent.) 


Clothing,  etc. 

1913 

1919 

Percentage 
OF  Increase 

Gray  shirtings,  per  ptece    .... 

P8.00 

P20.00 

150 

White  shirtings,  per  piece      .    . 

6.50 

18.00 

177 

Turkey  red  cloth,  per  piece   .    . 

2.50 

6.00 

140 

White  cotton  drills,  per  piece    . 

8.50 

22.50 

165 

Nainsooks  (white),  per  piece  .    . 

2.80 

8.00 

186 

White  ground  prints,  per  yard  . 

.08i 

.27 

217 

Colored  ground  prints,  per  yard 

.10 

.32 

220 

Cotton  colored  trouserings,  per  piece 

.16 

.47 

194 

Boots  and  shoes,  one  kind'with  the  otl 

ler 

145 

(Average  increase  on  the  nine  articles  of  clothing,  etc.,  177  per  cent.) 


Petroleum,  per  case 


P4.00        P8.85 


121 


(Average,  183  per  cent.) 


Cotton  yarn  has  increased  300  per  cent. 

Hardware,  paints,  oils,  etc.  have  increased  more  than  200  per  cent. 

Rent  for  furnished  room       ^ 

Rent  for  unfurnished  house  y  Increased  more  than  100  per  cent. 

Servants'  wages  J 


320  ECONOMIC  CONDITIONS 

The  figures  given  on  page  319  indicate  an  increase  of  a  hundred 
per  cent  in  servants'  wages  during  the  period  under  discussion. 
Was  this  increase  sufficient  ? 

30.  The  government  bonuses  of  1919  were  as  follows : 
On  less  than  P2400  per  annum,  25  per  cent ; 

On  from  P2400  up  to  but  not  including  P4000  per  annum. 
15  per  cent ; 

On  from   P4000  per  annum,  10  per  cent. 

31.  What  was  the  economic  basis  for  not  granting  a  flat  bonus 
of,  say,  20  per  cent  to  everybody  ?  32.  Were  the  bonuses  granted 
adequate  in  view  of  the  figures  from  the  Manila  Merchants' 
Association  ?  33.  In  general,  what  class  of  society  was  better  off 
in  1919,  {a)  day  laborers  and  persons  on  salaries,  (h)  farmers 
owning  their  own  lands,  (c)  farmers  on  shares,  (d)  merchants,  or 
(e)  manufacturers  ?  34.  Why  in  general  is  an  increase  in  prices 
beneficial  to  producers,  and  harmful  to  persons  with  fixed  incomes, 
such  as  laborers  and  persons  working  on  the  basis  of  a  salary  ? 
35.  Why  is  just  the  opposite  true  when  prices  fall  ? 

36.  Secure  data  from  the  census  of  1918  and  bring  in  a  report 
as  to  occupations  in  the  Philippines,  indicating  the  importance  of 
various  primary  and  secondary  occupations. 

37.  Secure  data  from  the  census  of  1918  and  bring  in  a  report 
on  classes  of  buildings  according  to  the  materials  in  various 
provinces. 

Suggestions  for  the  Study  of  Local  Conditions 

1.  Secondary  employments.  2.  Village  and  scattered-holding 
systems.  3.  Forms  of  group  labor.  4.  Persistence  of  group  labor. 
5.  Improvement  in  standard  of  living.  6.  Examples  of  reward 
for  labor  affecting  its  efficiency.    7.  Seasonal  labor. 

Suggestions  for  Reports  from  References 

1.  Government  insurance  funds :  land  title,  property  and 
fidelity  bond.  (Annual  report  of  the  Treasurer  of  the  Philippine 
Islands.) 

2.  From  Act  2581,  and  the  latest  annual  report  of  the  Insular 
Treasurer,  determine  the  activities  of  insurance  companies  in  the 


AGEICULTURAL  LABOE  321 

Philippine  Islands,  and   point   out   the    control  exercised  over 
them  by  the  government. 

3.  A  study  of  the  business  transacted  by  life-insurance  com- 
panies and  fire-insurance  companies  in  the  Philippine  Islands  as 
reported  in  the  last  Annual  Eeport  of  the  Insular  Collector  of 
Customs. 

4.  Secure  the  necessary  data  from  the  latest  annual  report  of 
the  Collector  of  Customs  and  bring  Chart  XXXII  down  to  the 
present.    5.  Comment  on  these  new  figures. 

6.  Food  industries.    (All  commercial  geographies.) 

Selections  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  Chapter 

1.  Standard  of  living.   (Bullock,  pages  21-28.) 

2.  Factors  of  production.   (Bullock,  pages  35-45.) 

3.  National  insurance  and  its  distribution.   (Bullock,  pages 
255-260.) 

4.  Interest.   (Bullock,  pages  261-270.) 

5.  Wages.   (Bullock,  pages  271-279.) 

6.  Rent.   (Bullock,  pages  279-291.) 

7.  Profits.   (Bullock,  pages  293-296.) 

8.  The  relation  of  laborers  to  the  product  of  their  labor. 
(Bullock,  pages  318-328.) 

9.  The  labor  contract.   (Bullock,  pages  297-300.) 
10.  Labor  legislation.   (Bullock,  pages  300-304.) 


PART  III.    INDUSTRIES  OTHER  THAN 
AGRICULTURE 

CHAPTER  XIY 

THE  ANIMAL  INDUSTRY 

Domestic  Animals 

The  Philippines  are  naturally  an  excellent  grazing  country. 
The  grasslands  of  the  Islands  comprise  approximately  forty 
per  cent  of  the  total  area.^  In  many  parts  there  are  extensive 
ranges  of  good  pasture  grasses,  as  well  as  large  areas  of  cogon 
grass,  which  afford  good  pasturage  if  kept  closely  cropped.^ 
The  carabao  is  indigenous  to  the  Philippines.  Cattle,  horses, 
and  goats  were  introduced  by  the  Spaniards  from  Europe, 
Mexico,  and  China.  These  rapidly  increased  in  number,  and 
by  1609  were  raised  on  stock  farms  in  different  parts  of  the 
Islands.^ 

Before  1888  the  amount  of  live  stock  in  the  Philippines 
was  greater  than  the  needs  of  the  people  required.  In  the 
grazing  regions  there  were  many  thousand  head  of  carabao, 
cattle,  and  horses ;  and  plenty  of  animals  were  available  for 
agriculture.  Since  that  date,  however,  rinderpest,  surra,  and 
the  ravages  of  war  have  reduced  the  number  to  only  a  frac- 
tion of  what  previously  existed. 

1  See  Chart  XXVIII. 

2  For  a  discussion  of  Philippine  grazing  area,  see  Miller's  "  Commercial 
Geography." 

«  Blair  and  Robertson's  "The  Philippine  Islands,"  XI,  89. 


324  ECONOMIC  CONDITIONS 

In  the  consideration  of  the  various  domestic  animals  of  the 
Phihppines  the  carabao  must  be  placed  first,  as  being  the  most 
important.^  Probably  ninety  per  cent  of  the  agricultural  and 
transportation  work  is  done  by  carabaos.  They  are  used  in 
preparing  the  land  for  planting,  in  cultivating  it,  and  in  trans- 
porting the  crop  to  market.  Their  milk  is  used  exclusively 
by  the  Filipinos.  Whether  carabaos  are  better  work  animals 
than  oxen  is  a  debatable  question.  There  can  be  no  doubt, 
however,  that  the  Filipino  farmers  and  laborers  prefer  the 
carabao,  and  it  is  given  better  treatment  and  more  attention 
than  any  other  domestic  animal  in  the  Islands.  The  particular 
advantage  which  the  carabao  has  over  other  draft  animals  is 
its  ability  to  work  easily  in  mud,  where  oxen  are  of  little  value 
and  the  horse  is  useless.  This  consideration  is  a  most  impor- 
tant one  on  account  of  the  semiliquid  state  to  which  the  low- 
land rice  fields  must  be  reduced  before  planting.  For  work 
in  these  fields  the  carabao  is  the  only  animal  in  existence  that 
is  satisfactory.  Though  carabaos  can  draw  heavier  loads  than 
cattle,  they  are  really  inferior  as  draft  animals,  since  they  are 
unable  to  work  so  continuously  or  to  perform  labor  in  the  sun 
so  well.  Moreover,  they  do  not  increase  so  rapidly,  and  are 
somewhat  more  susceptible  to  disease. 

The  cattle  found  in  the  Islands  came  originally  from  China 
and  Spain.  There  were  formerly  large  numbers  of  them,  but 
diseases  have  now  so  reduced  them  that  only  a  few  small 
herds  are  left.  The  larger  of  the  native  cattle  make  good 
work  animals,  and  many  of  them  are  used  for  that  purpose. 
Most  domestic  cattle,  and  particularly  those  of  the  larger 
herds,  are  small  in  stature  and  are  killed  for  beef.  Their 
small  size  is  not  due  to  the  lack  of  feed,  but  to  deterioration, 
since  no  fresh  blood  has  been  introduced  into  the  herds  for 
a  number  of  years.  Besides  these  native  cattle  several  thou- 
sands have  annually  been  imported  from  China,  Indo-China, 
and  certain  other  countries.    Most  of  these  were  intended  for 

1  This  discussion  of  Philippine  domestic  animals  is  taken  largely  from  the 
Agricultural  Review,  Vol.  IV,  No.  9. 


THE  ANIMAL  INBUSTKY  325 

meat,  but  a  large  number  were  sent  into  the  provinces  and 
used  for  agriculture  or  transportation.  To  improve  the  local 
stock,  the  Bureau  of  Agriculture  has  from  time  to  time  im- 
ported various  breeds.  Some  of  the  crosses  produced  have 
proved  satisfactory.  Among  these  the  Nellore  cattle  of  India 
are  worthy  of  special  mention,  since  they  are  seldom  attacked 
by  the  tick  and  resist  rinderpest,  the  two  chief  cattle  pests 
in  the  Philippines.  Little  fresh  milk  is  used  in  the  Philip- 
pines, and  only  a  few  milch  cows  have  been  imported,  from 
Australia. 

The  horse  of  the  Philippines  is  a  descendant  of  the  Sulu 
horse  and  the  horses  brought  by  the  Spaniards  from  Mexico  and 
China.  Although  it  is  a  small  animal,  probably  no  other  breed 
of  horses  in  the  world  has  the  combined  qualities  of  style, 
action,  vigor,  and  endurance  to  the  same  degree  that  the 
Philippine  breed  has.  This  has  doubtless  come  about  from  the 
little  attention  given  to  these  animals  ;  and  thus,  by  a  process 
of  natural  selection,  those  have  survived  which  are  best  fitted 
to  endure  the  conditions  of  Philippine  life.  The  Philippine 
horse  is  used  for  riding  and  light  hauling.  No  heavy  work  in 
the  field  or  on  the  road  is  performed  by  it ;  cattle  and  cara- 
baos  are  used  instead.  In  mountainous  regions  horses  are 
often  utilized  as  pack  animals. 

To  a  person  familiar  with  the  horses  of  Europe  or  America 
the  uniformity  in  the  types  of  Philippine  horse  and  its  limita- 
tion to  light  draft  work  seem  peculiar.  The  types  of  European 
and  American  horses  are  many  and  varied,  from  selection  and 
breeding.  Some  are  strong,  massive  draft  animals,  used  to 
pull  great  loads  through  the  streets.  Others  are  bred  for 
work  on  farms.  Then  there  are  horses  for  driving  in  carriages, 
and  others  for  riding.  Within  each  of  these  types  there  are 
subtypes.  The  horses  from  certain  localities  in  the  Philippines, 
such  as  Abra,  Batangas,  and  Cebu,  have  a  reputation  for 
strength  and  speed,  but  no  breed  has  been  developed  here 
other  than  the  general  type.  During  the  last  fifteen  years  the 
demand  for  horses  in  the  larger  towns  has  depleted  the  farms 


326  ECONOMIC  CONDITIONS 

of  their  best  animals.  The  poorer  animals  have  been  left  to 
reproduce  their  kind ;  as  a  consequence,  the  Philippine  horse 
has  deteriorated. 

Before  surra  became  prevalent  in  the  Islands,  the  supply  of 
horses  in  all  districts  was  plentiful.  This  disease,  however, 
left  many  towns  with  scarcely  an  animal,  and  everywhere  the 
price  given  for  a  good  horse  has  increased  several  fold.  Chiefly 
for  this  reason  a  large  number  of  horses  have  been  imj^orted 
from  Australia. 

It  is  important  that  the  native  horses  be  improved.  This 
can  be  accomplished  through  selection,  better  care,  and  cross- 
ing with  high-grade  animals  imported  from  other  countries. 
Horses,  since  they  have  greater  speed  than  either  carabaos  or 
cattle,  would  be  more  suitable  for  transportation ;  except  in 
rice  paddies  they  would  be  better  for  plowing  and  tilling  the 
land.  Indeed,  in  Cuenca,  in  Batangas,  much  of  the  plowing 
is  done  by  horses ;  in  certain  localities  the  small  native  horse 
is  now  used  for  both  plowing  and  tilling.  On  the  wharfs  at 
Cebu  wagons  are  seen  hauled  by  native  horses.  In  the  Islands 
as  a  whole,  however,  the  horse  will  not  supplant  other  work 
animals  for  heavy  transportation  and  for  agricultural  work 
until  the  breed  has  been  improved. 

Swine  are  a  source  of  great  wealth  in  the  United  States, 
where  large  and  important  industries  in  agriculture,  com- 
merce, and  manufacture  are  dependent  on  them.  It  is  doubt- 
ful if  these  industries  could  have  attained  their  present  state 
of  development  if  it  had  not  been  for  the  care  taken  in  im- 
proving the  breeds  of  swine,  to  produce  the  greatest  amount 
of  meat  and  fat  from  the  food  given.  Swine  are  bred  commer- 
cially on  the  farms ;  they  are  fattened  for  market  on  food 
of  which  the  value  and  economy  have  been  determined  by 
experience  or  by  scientific  experiment. 

In  comparison  with  the  attention  given  to  raising  swine  in 
the  United  States  the  situation  in  the  Philippines  is  peculiar. 
Here  the  swine  are  really  scavengers,  for  they  are  seldom 
penned,  and  are  compelled  to  find  most  of  their  food.    The 


THE  ANIMAL  INDUSTRY  327 

number  of  swine  raised  in  the  Islands  is  not  great,  but  most 
families  have  a  breeding  female,  the  young  from  which  are 
raised  and  eaten.  Usually,  however,  they  are  confined  to  a 
pen  for  a  few  weeks  to  be  fattened  by  special  feeding  before 
they  are  killed. 

Philippine  swine  are  long-nosed,  narrow-bodied,  and  flat- 
sided.  Their  shape  is  not  conducive  to  a  large  yield  of  fat 
and  flesh,  even  if  they  do  respond  fairly  well  to  feeding.  The 
greater  part  of  the  population  of  the  Philippines  is  dependent 
on  swine  for  its  meat  supply.  Pork  is  found  in  nearly  all 
markets,  whereas  beef  is  often  lacking.  There  is  always  a 
good  local  demand  for  pork  in  all  parts  of  the  Islands,  and  a 
constant  shipment  to  the  larger  towns.  There  is  also  a  large 
importation  of  pork  products.  Hence  the  Philippines  offer 
an  exceptional  opportunity  for  the  raising  of  swine  on  a 
commercial  basis. 

Good  food  for  fattening  swine  is  produced  in  the  Philip- 
pines. At  the  present  time  chopped  banana  stalks  and  tiqui- 
tiqui  are  the  most  used,  but  these  are  of  low  nutritive  value. 
Corn,  which  is  probably  the  best  of  all  food  for  swine,  is  raised 
here.  By  changing  corn  into  pork  the  farmers  in  the  United 
States  make  millions  of  pesos  annually.  Other  Philippine 
food  for  swine  consists  of  peanuts,  sorghums,  and  the  various 
kinds  of  beans.  Rice  bran  is  abundant  and  nutritious.  The 
milk  of  the  coconut  contains  a  considerable  amount  of  nutri- 
ment ;  instead  of  being  Avasted,  as  it  now  is,  it  might  well  be 
saved  and  given  to  the  swine,  just  as  in  the  United  States 
skimmed  milk,  a  by-product  of  the  dairy  industry,  is  fed  to 
them.  Coconut  milk,  however,  should  be  used  in  connection 
with  other  food.  Copra  cake  from  the  oil  presses  is  also 
excellent  food. 

However,  that  the  Philippine  swine  may  be  profitable,  it  is 
necessary  to  improve  the  breed.  Swine  of  good  breed  have 
been  introduced  into  certain  localities,  as  in  Lipa,  in  Batangas, 
where  to-day  can  be  found  specimens  which  compare  favorably 
with  the  American  hog. 


328  ECONOMIC  CONDITIONS 

A  small  number  of  goats  wander  about  nearly  every  barrio 
in  the  Philippines.  No  particular  care  is  given  to  them  ;  they 
are  seldom  used  except  to  furnish  flesh  for  feasts,  or,  in  a 
limited  way,  to  transport  small  loads.  The  goat  could  be  made 
of  considerable  importance  in  the  Philippines  if  the  value  of 
its  milk  were  understood.  Goats'  milk  is  superior  to  that  of 
the  cow  or  of  the  carabao,  and  is  produced  much  more  econom- 
ically. In  many  countries,  both  temperate  and  tropical,  it  is 
consumed  in  large  quantities.  Some  of  the  best  breeds  of 
milch  goats,  such  as  the  Maltese,  have  already  been  introduced 
into  the  Philippines  ;  the  increase  of  these  would  probably  go 
a  long  way  toward  reducing  the  high  rate  of  infant  mortality 
in  the  Islands. 

There  are  no  chicken  farms  in  the  Philippines,  but  each 
family  usually  has  a  few  chickens  for  its  own  use.  Poultry, 
next  to  pork,  is  the  chief  meat  eaten,  but  in  the  Islands  as 
a  whole  there  is  an  undersupply  of  poultry  and  eggs;  this 
is  due  not  only  to  the  small  number  of  chickens  and  ducks 
raised,  but  also  to  their  poor  laying  qualities.  Such  a  condi- 
tion is  largely  the  result  of  cockfighting.  The  high  valuation 
placed  on  the  game  bird,  rather  than  on  either  hens  or  eggs, 
has  resulted  in  a  small  type  of  chicken  for  food,  which  lays 
only  a  few  small  eggs  and  has  tough,  and  poorly  flavored  meat. 
The  eggs  annually  imported  from  China  amount  to  more  than 
4,000,000  dozen  yearly,  valued  at  from  P600,000  to  P700,000, 
but  these  do  not  entirely  supply  the  demand  of  the  larger 
cities.  In  many  of  the  smaller  communities  eggs  are  seldom 
available.  Increase  in  the  amount  of  domestic  poultry  and  of 
eggs  may  be  brought  about  either  by  increasing  the  number 
of  domestic  chickens  used  for  food,  or  by  raising  poultry  on 
farms,  as  is  done  in  the  United  States  and  in  certain  countries 
of  Europe.  In  any  case,  however,  good  results  will  be  secured 
only  by  improving  the  breed  of  poultry.  At  the  present  time 
farmers  often  add  to  their  income  by  the  manufacture  and  sale 
of  articles  made  in  their  homes.  The  sale  of  chickens,  ducks, 
3,nd  eggs  can  also  be  made  to  yield  additional  income. 


THE  ANIMAL  INDUSTRY  329 

Poultry  raising  as  a  business  has  received  some  attention 
in  and  about  Manila,  but  as  yet  little  has  been  accomplished. 
In  raising  poultry  here  cleanliness  must  be  the  great  care. 

Animal  Breeding 

In  most  civilized  countries  of  the  world  man's  control 
over  flora  and  fauna  is  such  that  he  determines  their  types. 
Improvement  by  selection  in  the  vegetable  kingdom  has 
already  been  explained.  The  effects  of  selection  are  often 
better  shown  in  the  animal  kingdom.  For  instance,  the  horse 
may  be  bred  either  for  massiveness  and  strength  or  for  speed ; 
some  cattle  are  bred  for  meat,  others  for  milk.^  Some  breeds 
of  chickens  are  noted  for  their  laying,  others  for  the  quality 
of  their  flesh,  and  still  others  for  their  ability  as  fighters. 
In  animals  selection  is  little  practiced  by  the  Filipinos,  and 
for  this  reason  the  animals  raised  on  the  Islands  for  any 
great  length  of  time  have  deteriorated.  By  careful  selection 
and  the  introduction  of  new  breeds  from  foreign  countries 
great  improvement  can  be  made  in  all  domestic  animals. 

Forage 

Another  problem  connected  with  the  animals  in  the  Philip- 
pines is  that  of  forage.^  In  the  temperate  zone  the  grass  is 
killed  by  frost  or  snow ;  hence  it  is  necessary  to  provide 
forage  for  the  winter  months.  In  the  tropics  the  growth  of 
wild  grasses  and  other  forage  plants  is  continuous  through- 
out the  year,  except  in  regions  subject  to  a  dry  season,  in 
which  regions  some  system  of  irrigation  is  usually  found. 

The  chief  forage  crop  now  cultivated  in  the  Philippines  is 
barit  (^Leersia  hezandra),  which  is  fed  green.  A  large  amount 
of  food  is  also  obtained  from  the  by-products  of  the  crops 
grown  for  man,  the  most  important  of  which  are  rice  straw,. 

1  Gregory,  Keller,  and  Bishop's  "Physical  and  Commercial  Geography." 

2  This  discussion  of  forage  is  based  upon  data  from  the  Agricultural 
Review,  Vol.  IV,  No.  8. 


330  ECONOMIC  CONDITIONS 

corn  leaves,  sugar-cane  leaves,  and  peanut  vines.  Cattle  and 
carabaos  thrive  on  the  native  pastures  and  the  grasses  grown 
for  forage,  but  the  Filipino  horses  are  insufficiently  fed  on 
their  ration  of  green  grass  with  an  occasional  small  portion 
of  unhulled  rice.  At  present  a  sufficient  amount  of  home- 
grown food  cannot  be  obtained  for  the  several  thousand 
horses  imported  from  America  and  Australia.  Since  about 
three  million  pesos'  worth  of  food  is  normally  imported  every 
year,  it  is  important  to  find  forage  crops  that  can  be  grown 
and  cured  locally  as  substitutes  for  this,  so  far  as  food  value 
and  cheapness  are  concerned.  Experiments  on  local  and 
imported  grasses  have  been  made  to  determine  (1)  which 
will  yield  palatable  hay ;  (2)  what  the  possibilities  are  of 
curing  hay,  so  that  it  will  keep  in  storage ;  and  (3)  what 
the  profitableness  of  the  crop  is,  as  compared  with  other 
field  crops.  None  of  the  local  grasses  give  promise  as  hay 
crops.  On  account  of  the  humidity  of  the  atmosphere,  even 
during  the  dry  season,  only  the  slender-stemmed  imported 
grasses  can  be  easily  and  satisfactorily  cured.  The  best  of 
these  have  been  found  to  be  Rhodes  grass  QChloris  gayand) 
and  Tunis  and  Sudan  grasses  (^Andropogon  halepensis).  The 
production  of  corn-blade  fodder  seems  practicable.  Curing 
hay  from  all  these  plants  during  the  dry  season  presents  no 
great  difficulty.  From  the  point  of  view  of  market  facilities 
the  best  localities  for  commercial  hay  growing  at  present  are 
in  Luzon. 

Rinderpest 

The  greatest  problem  connected  with  agriculture  in  the 
Philippines  is  that  of  overcoming  rinderpest,  or  of  holding  it 
in  check.  1  The  history  of  rinderpest  extends  over  a  long 
period  of  years.    This  disease  has  existed  on  the  continent 

1  This  discussion  on  rinderpest  is  largely  based  on  an  article  in  the  Agricul- 
tural Review,  July,  1911,  written  by  Dr.  A.  R.  Ward,  Chief  Veterinarian  of 
the  Philippine  Bureau  of  Agriculture.  It  sets  forth  the  present  policy  of  that 
bureau  with  respect  to  rinderpest. 


Photo  by  Bureau  of  Agriculture 

Curing  an  Introduced  Grass  for  Hay 


Gathering  Zacate,  or  Green  Feed 
FORAGE 


332  ECONOMIC  CONDITIONS 

of  Asia  since  the  earliest  authentic  records,  whither  it  was 
carried  by  great  migrations  and  by  war  and  commerce.  There 
are  definite  accounts  of  its  appearance  in  Europe  from  time 
to  time  during  the  past  fourteen  hundred  years.  In  the 
eighteenth  century  200,000,000  head  of  cattle  were  destroyed 
by  it  in  Europe.  In  its  last  invasion  of  England,  in  1865-1866, 
some  279,000  head  of  cattle  were  attacked  in  eighteen  months. 

Long  experience  has  demonstrated  that  rinderpest  can  be 
exterminated  by  the  slaughter  of  the  diseased  and  suspected 
animals,  together  with  thorough  disinfection,  or  by  prevent- 
ing the  intermingling  of  the  infected  animals  with  the  well. 
By  these  methods  the  disease  has  been  overcome  in  Europe. 
In  the  past  sixteen  years  an  earnest  effort  has  been  made  to 
control  the  disease  with  antitoxic  serum,  but  a  critical  study 
of  the  results  of  its  use  has  led  to  the  abandonment  of 
this  method. 

In  the  discussion  of  the  importation  of  rice  it  was  noted 
that  rinderpest  was  introduced  into  the  Philippines  about  the 
year  1888.  It  rapidly  spread  to  many  of  the  provinces,  and 
thousands  of  cattle  and  carabaos  died.  On  the  ranges  of  the 
Cagayan  Valley  ninety-five  per  cent  of  the  cattle  perished; 
everywhere  in  the  Islands  the  losses  were  tremendous.  In 
1892  practically  all  the  cattle  on  Masbate  Island  succumbed. 
By  the  year  1894  the  disease  had  largely  spent  itself,  but 
only  a  small  percentage  of  the  animals  were  left.  These 
were  apparently  sufficient  for  the  needs  of  the  Islands,  how- 
ever, since  few  cattle  were  imported.  With  the  World  War 
came  the  destruction  of  live  stock  and  a  reoccurrence  of 
rinderpest.  This  outbreak  was  probably  due  to  infected 
cattle  brought  in  during  some  of  the  numerous  shipments 
from  China,  where  the  pest  existed.  Again  there  were  large 
losses,  from  which  the  Islands  have  never  recovered.  This 
attack  spent  itself,  but  sporadic  outbreaks  have  occurred 
almost  every  year.  Many  of  these  outbreaks  are  undoubtedly 
caused  by  infection  from  imported  animals,  and  others  by 
local  infectioUt 


THE  ANIMAL  INDUSTRY  333 

The  effect  of  rinderpest  on  economic  conditions  in  the 
Philippines  has  been  great.  In  agriculture  it  has  caused 
the  abandonment,  permanently  or  temporarily,  of  thousands 
of  hectares  of  land,  and  a  consequent  increase  in  rice  imports  ; 
with  carabaos  selling  at  exorbitant  prices  hundreds  of  people 
in  certain  regions  were  driven  from  farming  in  the  lowlands, 
and  resorted  to  the  kaingin  or  some  otlier  means  of  earning 
a  living.  It  has  also  encouraged  the  growing  of  such  export 
crops  as  abaca  and  copra,  which  do  not  require  much  labor 
and  cultivation.  It  has  increased  the  difficulty  of  carrying 
agricultural  products  to  market.  The  additional  cost  of  log- 
ging operations  has  checked  the  building  of  good  houses 
because  of  the  lack  of  cheap  lumber.  Finally,  it  has  so 
reduced  the  domestic  supply  of  beef  that  the  diet  of  the 
Filipinos  now  contains  little  meat. 

The  problem  of  increasing  the  number  of  animals  in  the 
Philippines  sufficiently  to  meet  insular  needs  is  difficult,  and 
has  given  rise  to  disagreements  on  the  part  of  experts 
and  other  interested  persons.  Obviously  the  quickest  and 
easiest  method  is  to  import  animals  from  other  countries, 
such  as  China,  Indo-China,  India,  and  Australia,  all  of  which 
have  a  surplus.  However,  from  the  standpoint  of  the  agri- 
cultural and  industrial  welfare  of  the  Philippines,  it  is 
necessary  that  the  imported  animals  be  free  from  disease. 
Cattle  from  the  countries  just  mentioned  are  subject  to 
attacks  of  either  rinderpest  or  pleuropneumonia,  and  their 
admission,  even  after  careful  quarantine,  has  been  found 
dangerous,  several  outbreaks  of  rinderpest  having  been 
directly  traced  to  them.  Outbreaks  of  rinderpest  have  at 
times  been  caused  by  the  introduction  of  animals  which  were 
killed  for  meat  almost  immediately. 

The  safest  procedure  would  be  to  place  an  embargo  on 
the  importation  of  carabaos  and  cattle,  and  at  the  same  time 
to  undertake  a  systematic  quarantine  of  the  Islands  and  by 
the  immunization  of  work  animals  stamp  out  the  disease.  The 
high  prices  which  work  bullocks  bring  in  the  Philippines 


334  ECONOMIC  CONDITIONS 

warrant  the  expense  of  immunizing  them  for  export  from 
Asia.  It  has  now  been  fairly  well  proved  that  the  bul- 
locks of  southwestern  Asia  can  be  successfully  immunized 
against  rinderpest.  Immunized  animals  from  that  region  may 
therefore  be  safely  imported  for  purposes  of  agriculture  and 
transportation. 

The  foreign  population  has  always  preferred  cold-storage 
meat  imported  from  Australia ;  such  meat  could  be  brought 
into  the  Islands  for  consumption  by  the  Filipinos. 

This  plan  is  not  practicable,  however.  In  the  first  place, 
the  Filipinos  boil  their  meat,  and  cold-storage  meat  is  not  so 
good  as  fresh  beef  when  cooked  in  this  way.  The  Filipinos  pre- 
fer fresh  meat.  Moreover,  the  natural  increase  in  animals  is  not 
sufficient,  even  when  supplemented  by  importations  of  immun- 
ized animals  from  Asia ;  agriculture  is  progressing  too  rapidly. 

The  plan  of  embargo  was  begun,  but  has  now  been 
abandoned.  Carabaos  and  cattle  are  now  imported  into  the 
Philippines  under  strict  quarantine.  Occasionally  an  out- 
break has  occurred  of  rinderpest  and  other  epidemic  diseases, 
but  these  have  so  far  been  held  in  control.  Certain  chances 
must  be  taken  to  meet  in  some  degree  the  pressing  needs  of 
the  Islands  for  work  animals  and  animals  for  slaughter.  In 
the  past  few  years  an  average  number  of  about  1500  cara- 
baos and  10,000  cattle  have  been  imported  annually,  chiefly 
from  the  French  East  Indies.  The  cattle  are  valued  at  about 
P 50 0,000.  They  are  mostly  slaughtered.  In  addition,  the 
normal  import  of  fresh  beef  into  the  Islands  is  valued  at 
more  than  P  1,000,000.  It  comes  from  Australia  when 
shipping  is  available. 

Coincident  with  this  importation  of  animals  there  is  being 
carried  on  a  campaign  to  control  rinderpest  in  the  Islands. 
The  methods  employed  by  the  Bureau  of  Agriculture  consist 
in  confining  the  sick  and  in  keeping  the  susceptible  animals 
isolated  from  one  another.  In  other  words,  it  is  hoped  to 
control  the  disease  by  quarantine.  Pursuantly  to  this  policy 
districts  in  which  epidemics  occur  are  specially  quarantined. 
This  would  be  a  much  easier  task  were  the  agricultural  and 


THE  ANIMAL  INDUSTRY  335 

grazing  lands  of  the  Islands  divided  into  parcels  by  fences,  as  in 
most  countries  of  Europe  and  America.  In  the  Philippines  the 
lands  are  unfenced,  and  consequently  animals  graze  together. 
In  many  of  the  Islands,  especially  in  Luzon,  there  is  also  an 
extensive  movement  of  cattle  from  province  to  province,  which 
increases  the  liability  of  spreading  the  disease.  However,  by 
local  quarantine  it  is  hoped  to  hold  outbreaks  in  check. 

Under  the  most  favorable  conditions  the  extinction  of 
rinderpest  will  involve  many  years  of  work,  with  occasional 
periods  of  seeming  failure ;  there  will  be  annoyance  and  loss 
to  agriculturists,  who  during  the  quarantine  cannot  use  their 
animals  at  all,  or  only  to  a  limited  extent. 

If,  by  keeping  out  foreign  cattle  not  immunized,  and  by 
imposing  local  quarantine  to  protect  native  carabaos  and  cattle, 
rinderpest  is  finally  controlled  in  the  Philippines ;  and  if  a 
sufficient  number  of  cattle  for  agriculture,  transportation,  and 
food  are  raised,  one  of  the  greatest  economic  problems  of  the 
Islands  will  have  been  solved.  Stock  raising  may  become  a 
most  important  industry  in  numerous  grazing  regions.  Mean- 
while it  is  not  probable  that  much  capital  will  be  invested  in 
large  stock-raising  enterprises.  The  breeding  of  domestic  cattle 
will  probably  be  limited  for  some  time  to  isolated  regions  and 
to  small  islands. 

Can  a  general  campaign  of  immunizing  carabaos  and  cattle 
be  carried  to  a  successful  conclusion,  just  as  vaccination  has 
held  smallpox  in  control  ?  Probably  not  at  this  time.  Such 
a  campaign  would  require  the  cooperation  of  the  entire  com- 
munity and  of  every  region  of  the  Philippines;  this  cannot 
be  expected  until  the  people  are  educated  to  a  general  under- 
standing of  its  importance.  Moreover,  it  will  require  a  large 
government  appropriation  and  effort.  With  its  present  appro- 
priation and  force  the  Bureau  of  Agriculture  is  able  to  im- 
munize annually  no  more  than  10,000  or  12,000  animals, 
which  are  fewer  than  the  normal  annual  increase  in  the 
Islands  usually  is. 

That  there  has  been  a  considerable  increase  in  the  number 
of  domestic  animals  is  indicated  by  the  table  on  page  336. 


836 


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THE  ANIMAL  INDUSTRY  337 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  What  has  been  the  percentage  of  increase  in  the  domestic 
animals  in  the  Philippines  since  1903  ?  2.  Account  for  these 
increases. 

3.  Why  can  the  government  not  shut  out  all  cattle  from  the 
Philippines  (thus  preventing  the  importation  of  rinderpest  and 
other  epidemic  diseases  of  cattle),  and  rely  on  the  natural  increase 
of  work  animals  to  care  for  the  needs  of  the  country  ?  4.  What 
is  the  policy  of  the  government  ? 

5.  The  chief  difficulties  in  the  control  of  rinderpest  in  the 
Philippines  are  unfenced  fields  and  the  lack  of  cooperation  of  the 
people,  who  insist  on  evading  quarantine  and  using  their  animals. 
Explain  why  these  difficulties  occur,  and  how  they  may  be  mini- 
mized or  overcome.    6.  Would  fencing  the  agricultural  lands  pay? 

7.  You  have  been  designated  by  the  directors  of  a  corporation  to 
select  a  locality  for  starting  a  cattle  ranch.    Bring  in  your  report. 

8.  Explain  how  the  increased  use  of  gasoline  tractors  and  motor 
trucks  will  indirectly  help  the  natural  increase  of  work  animals  to 
meet  the  needs  of  agriculture. 

9.  How  would  the  control  of  rinderpest  in  the  Philippines 
increase  the  standard  of  living  here  ? 

Suggestions  for  the  Study  of  Local  Conditions 

1.  Chickens,  ducks,  and  eggs.  Could  the  production  be  in- 
creased ?  Is  the  demand  met  ?  2.  Consumption  of  meat  (beef  and 
pork).  Is  enough  available  ?  3.  Rinderpest  and  its  control.  Is 
the  supply  of  draft  animals  adequate  ? 

Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  Compare  the  number  of  domestic  animals  in  percentages  of 
the  population  in  the  Philippines  with  those  of  the  United  States 
and  other  countries. 

2.  The  world's  draft  animals.  (All  commercial  geographies.) 


338  ECONOMIC  CONDITIONS 

3.  The  gasoline  engine  and  draft  animals. 

4.  Make  and  explain  charts  showing  the  uses  of  beef  cattle; 
of  pigs. 

5.  The  world's  cattle  industry  (Brigham,  pages  40-49  ;  Bishop 
and  Keller;  Finch  and  Baker).  Sources  for  the  supply  of  work 
animals  and  meat  for  the  Philippines. 

6.  The  cold-storage  industry.  (In  and  about  Manila  a  report  on 
the  methods  used  in  local  cold  storage  may  be  written.) 

7.  The  pork-packing  industry  of  the  United  States.  8.  The 
world's  swine  industry.  9.  The  world's  sheep  industry.  (All  com- 
mercial geographies.) 

10.  Goats.  (Finch  and  Baker.) 

11.  By-products  of  the  animal  industries  (leather,  furs,  fertil- 
izers).   (Bishop  and  Keller,  and  other  commercial  geographies.) 

12.  Tanning  materials  :  those  used  in  the  Philippines  ;  produc- 
tion and  uses  of  leather  in  the  Philippines.  (Miller.)  13.  The 
value  of  the  goat  in  Italy. 

14.  The  poultry  industry  in  the  United  States.  (All  commercial 
geographies  ;  Finch  and  Baker.)  15.  Why  the  Philippines  do  not 
produce  enough  eggs  for  local  consumption.  16.  Can  poultry  be 
raised  commercially  in  the  Philippines  ? 

17.  Hay  and  forage.  (Miller ;  Finch  and  Baker.) 

18.  With  data  from  the  census  of  1918  prepare  maps  showing 
the  distribution  of  the  following  animals  in  the  Philippines : 
carabaos,  cattle,  horses,  swine,  chickens. 


CHAPTER  XV 

FISHING 

Inshore  Fisheries 

The  countless  lights  seen  at  night  along  the  coasts  of  well- 
populated  islands,  such  as  Cebu  and  most  islands  of  the 
Archipelago,  are  indicative  of  the  extent  of  inshore  fisheries 
in  the  Philippines.  Most  of  the  fish  caught  in  the  Philippines 
come  from  these  inshore  fisheries ;  although  no  large  enter- 
prises are  involved,  their  aggregate  is  very  large.  Nearly  all 
the  Islands  have  shallow  waters  along  the  coasts,  and  the 
fishing  banks  are  prolific  and  widely  scattered.  Those  of 
which  the  commercial  value  is  best  known  are  at  Sitanki, 
Masbate,  Cebu,  Corregidor  Island,  Cuyo  Islands,  Zamboanga, 
and  San  Miguel  Bay. 

Although  other  methods  of  fishing  are  employed,  the  use  of 
the  dragnet  is  distinctly  the  most  efficient  and  popular.  The 
boats  ordinarily  used  for  this  kind  of  fishing  are  fairly  large, 
carrying  from  thirty  to  forty  men.  Work  is  usually  done  at 
night,  when  lights  can  be  used  to  attract  the  fish.  For  catch- 
ing small  fish  along  the  beaches  and  in  shallow  waters  purse 
nets  and  hand  traps  are  used  by  men,  women,  and  children. 
Shrimps,  clams,  oysters,  crabs,  and  other  shellfish  are  also 
gathered.  Fish  corrals,  or  traps,  made  of  bamboo  have  been 
used  in  the  Islands  from  historic  times.  The  natives  were 
using  them  when  the  Spaniards  came  to  the  Islands ;  a  large 
part  of  the  fish  consumed  here  are  still  caught  by  this  method. 
Commercially  speaking,  this  is  the  most  profitable  of  all 
methods  employed. 

As  a  rule,  the  Filipinos  who  live  along  the  coast  divide 
their  time  between  the  farm  and  the  sea.    Few  of  them  make 

339 


340  ECONOMIC  CONDITIONS 

a  business  of  fishing.  Outside  of  the  large  towns  it  is  usual 
for  each  family  to  secure  its  own  supply  of  fish,  or  to  purchase 
it  from  those  who  have  been  more  diligent  or  fortunate.  On 
unusually  successful  days  the  catch  of  fish  may  exceed  local 
demands,  and  the  surplus  is  carried  to  other  towns.  Near  the 
large  towns,  especially  where  prolific  banks  exist,  there  are 
barrios  that  live  almost  entirely  by  fishing.  For  instance,  at 
least  four  fifths  of  the  people  in  the  Malabon  district  of  Rizal 


BOATS  USED  FOR  INSHORE  FISHING 

Province  derive  their  living  directly  or  indirectly  from  the 
sea.  Even  about  Manila  Bay,  and  on  the  rivers  and  estuaries 
emptying  into  it,  may  be  found  towns  largely  dependent  on 
fishing.  Their  product  is  sold  in  Manila  and  other  large 
places.  In  general,  however,  a  fishing  barrio  is  the  poorest 
part  of  a  town.  The  people  barely  make  a  living,  and  in  many 
cases  have  to  supplement  their  earnings  by  means  of  a  few 
coconut  trees  or  other  small  plantings  of  grain  or  tubers  about 
their  houses. 

In  certain  localities  in  the  Philippines,  such  as  the  mouths 
of  the  Cagayan  River  in  northern  Luzon,  and  the  Agusan 


FisHma  341 

River  in  Mindanao,  schools  of  fish  appear  at  certain  seasons 
of  the  year,  and  the  catch  is  often  large.  During  these  runs 
the  inhabitants  of  the  neighboring  provinces  come  in  their 
boats.  It  is  estimated  that  twenty-five  hundred  persons  from 
Ilocos  Norte  alone  come  each  year  to  the  fishing  grounds  near 
Aparri.  They  dry  the  fish,  or  make  them  into  bagoong  for 
shipment  inland. 

The  fishermen  are  not  necessarily  the  owners  of  the  boats, 
nets,  and  traps  with  which  they  carry  on  the  inshore  fishing. 
The  work  is  often  done  on  shares,  the  size  of  the  shares  vary- 
ing with  the  method  of  fishing.  In  Batangas  from  eight  to 
twelve  men  operate  a  boat  under  the  direction  of  a  headman, 
who  sells  the  fish  and  divides  the  money.  The  owner  of  the 
boat  and  nets  receives  one  half;  the  other  half  is  divided 
among  the  men,  the  headman  receiving  twice  the  share  of 
any  other.  When  the  boats  and  nets  are  owned  by  different 
persons,  the  owner  of  the  nets  receives  one  fourteenth,  and 
the  owner  of  the  boats  six  fourteenths.  In  some  other  places 
the  workers  are  paid  in  fish  at  the  rate  of  about  half  a  peso 
a  day.  In  general,  however,  it  may  be  stated  that  where 
boats  and  nets  are  used,  the  catch  is  divided  equally  between 
the  owner  of  the  equipment  and  the  fishermen.  Under  this 
arrangement  the  fishermen  repair  the  nets  or  make  new  sections 
during  the  off  season. 

Five  men  are  usually  required  to  run  a  trap  and  keep  it  in 
repair ;  it  is  not  often  that  an  owner  personally  takes  care  of 
it.  The  catch  is  divided  into  two  parts,  half  for  the  owner 
and  half  for  the  laborers.  A  division  more  advantageous  to  the 
owner  is  that  in  which  he  receives  all  the  fish  until  he  is  reim- 
bursed for  the  expenses  of  making  the  trap,  after  which  he 
receives  one  half  of  the  catch,  and  divides  the  other  half 
among  the  laborers.  In  a  few  instances  the  men  are  hired 
outright  to  tend  the  trap. 

It  is  not  often  that  the  fishermen  themselves  vend  their 
catch.  Usually  fish  merchants  (men  or  women)  purchase  the 
fish,  to  sell  it  again  in  the  market  or  peddle  it  about  the  town. 


342  ECONOMIC  COifDITIONS 

Fresh-Water  Fisheries 

In  several  of  the  larger  fresh-water  lakes  of  the  Philippines 
a  considerable  amount  of  fish  is  caught.  For  instance,  it  is 
estimated  that  the  fish  taken  during  one  year  along  the  north- 
eastern shores  of  Laguna  de  Bay  is  worth  about  ?40,000. 
The  methods  by  which  these  fish  are  caught  and  the  division 
of  the  product  are  similar  to  those  of  inshore  fishing. 

The  rivers  contain  several  varieties  of  fish.  The  mud  fish 
is  found  in  abundance,  the  number  caught  in  the  rice  fields 
sometimes  being  so  large  that  at  plowing  time  the  fishing 
privileges  are  sold.  Besides  the  mud  fish,  frogs  are  obtained, 
as  well  as  fresh-water  clams  and  other  shellfish.  Much  river 
fishing  is  done  during  the  rainy  season  or  when  people  are 
not  engaged  in  planting  rice.  Boats,  nets,  and  traps  are  used 
in  the  rivers ;  in  the  shallow  fields  hand  traps  are  much 
employed.    Some  fishing  is  also  done  with  hook  and  line. 

These  fresh-water  fish,  together  with  fresh  or  preserved  fish 
imported  from  the  coast,  constitute  a  large  part  of  the  proteid 
food  consumed  in  the  inland  regions  of  the  Philippines. 

Fish  Culture 

In  the  provinces  about  Manila,  and  to  a  certain  extent 
near  Iloilo,  milk  fish  are  grown  in  ponds.  These  fish  form 
an  important  part  of  the  commercial  supply  for  the  two  cities 
and  for  the  country  roundabout.  The  ponds  are  expensive ; 
for  it  requires  a  considerable  amount  of  capital  to  build  them 
and  to  carry  on  the  industry. 

Preserved  Fish 

A  large  part  of  the  fish  eaten  in  the  Philippines  are  consumed 
fresh,  chiefly  because  the  majority  of  the  people  obtain  their 
own  supply.  However,  if  there  is  a  surplus,  it  is  often  dried, 
and  thus  preserved  for  a  few  days.  Fish  caught  in  commer- 
cial quantities  are  made  into  bagoong,  or  sometimes  smoked. 


INLAND  FISHERIES 


CATCHING  MUDFISH  WITH  HAND  TRAPS 
IN  THE  RICE  FIELDS 


DRYING  FISH 


344  ECONOMIC  CONDITIONS 

The  food  value  of  bagoong  has  ah'eady  been  discussed  in  its 
relation  to  the  standard  of  living.  Preserved  fish  are  of  course 
more  generally  consumed  in  the  interior  than  along  the  coasts. 

Increasing  the  Supply.   Deep-Sea  Fishing 

The  market  for  fish  in  the  Philippines  is  greatly  under- 
supplied.  There  are  few  towns  in  the  Islands  which  at  the 
present  time  could  not  consume  more  fish  than  are  available. 
In  many  places  the  poor  buy  canned  salmon,  because  it  is 
cheaper  than  local  fish.  This  condition  arises  from  the  inade- 
quate methods  of  catching  fish  and  the  limitations  of- inshore 
fishing;  the  largest  and  most  prolific  banks  are  almost  un- 
touched. The  fish  imported  into  the  Philippines  are  valued 
at  more  than  Pi, 000,000  annually  ;  they  consist,  for  the  most 
part,  of  cheap  canned  salmon  and  sardines. 

In  other  countries  in  which  fishing  is  an  important  indus- 
try the  fishing  grounds  are  often  a  long  distance  from  home. 
Large  sailing  or  steam  vessels  carry  the  fishermen  and  their 
smaller  boats  to  the  banks,  where  they  remain  several  days. 
Often  small  steamers  or  launches  are  used  to  manage  the 
nets.  By  these  methods  great  quantities  of  fish  are  caught  in 
the  deep-sea  banks.  The  lack  of  fish  in  the  Philippine  market 
has  led  to  interest  in  these  larger  fishing  enterprises,  and  the 
government,  as  well  as  private  companies,  has  investigated 
the  matter  with  a  view  to  improving  existing  conditions.  The 
reports,  however,  are  unfavorable  to  the  use  of  extensive 
methods.  The  capital  which  must  be  invested  in  such  an 
enterprise  and  the  expenses  connected  with  it  are  very  great. 
Consequently,  to  make  it  profitable  the  catches  must  be  large  ; 
but  fish  in  the  Philippines  do  not  seem  to  be  abundant  except 
in  the  vicinity  of  coral  reefs,  and  these  ruin  expensive  appa- 
ratus. Efforts  to  use  large  apparatus  were  given  up  until 
recently,  when  the  Japanese  became  interested.  In  Japan  a 
large  number  of  steam  trawlers  are  used  in  the  fisheries.  Pos- 
sibly some  such  system  can  be  made  effective  on  the  coral 
fishing  banks  of  the  Philippines. 


FISHIKO  345 

Minor  Sea  Products 

Although  food  is  the  chief  object  of  the  fishing  in  Phihp- 
pine  waters,  certain  minor  fishing  industries  are  of  enough 
importance,  either  actual  or  potential,  to  be  noted.  Chief 
among  these  is  the  mother-of-pearl  fishing  carried  on  in  the 
southern  part  of  the  Islands.  This  industry  exports  a  prod- 
uct valued  at  from  P300,000  to  P700,000  annually.  A  small 
amount  of  tortoise  shell  also  is  exported.  The  export  of  pre- 
pared beche  de  mer  (trepang)  also  amounts  to  several  thou- 
sand pesos.  Among  the  most  important  fishing  industries 
which  will  admit  of  commercial  development  in  the  Philip- 
pines is  that  of  sponge  fishing.  Several  excellent  commercial 
varieties  of  sponges  are  found  here,  and  a  small  export  has 
already  developed. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 

I.  Importance  of  fish  in  the  diet  of  the  Filipinos.  2.  Com- 
mercial forms  of  fish  in  the  Philippines.  3.  How  the  Philip- 
pine supply  of  fish  might  be  increased.  4.  Methods  of  catching 
fish.    5.  Fishponds. 

6.  A  report  on  fish  found  in  the  local  market.  7.  Is  the  demand 
for  fish  supplied  ? 

8.  The  world's  fishing  banks.  9.  The  chief  kinds  of  commercial 
fish.  10.  The  preparation  of  fish  for  commerce.  (All  commercial 
geographies.) 

II.  Varieties  of  Philippine  commercial  fish  and  their  uses. 
(Miller.) 

12.  The  mother-of-pearl,  beche  de  mer,  and  sponge  fisheries  of 
the  Philippines.    (Miller.) 

13.  The  following  figures  are  taken  from  the  census  of  1918 : 
In  eight  provinces  of  the  Philippines  there  are  1149  Filipinos 

and  21  foreigners  engaged  in  the  fishing  industry,  making  incomes 
of  not  less  than  PlOOO  each  a  year.  Their  combined  capital,  in- 
cluding real  estate  and  improvements  on  fish  farms  (so  designated 
iii  the  courts)  is  P  2,493,010;  their  gross  returns  in  1918  were 
P  2,946,940,  the  gross  profit  being  P  453,930. 


346  ECONOMIC  CONDITIONS 

The  provinces  covered  by  these  figures  are  Batangas,  Cavite, 
Laguna,  La  Union,  Leyte,  Pampanga,  Rizal,  and  Sorsogon, 

The  report  by  provinces  follows  : 

Batangas  :  Filipino  fishermen,  100 ;  foreigners  engaged  in  the 
industry,  none;  capital  invested  in  the  industry,  P  163,829; 
returns  in  1918,  P296,529 ;  gross  profit  in  1918,  P  122,700. 

Cavite:  Filipino  fishermen,  130;  foreigners  engaged  in  the 
industry,  none;  capital  invested  in  the  industry,  P 300,530; 
returns  in  1918,  p523,386;  gross  profit  in  1918,  p223,306. 

Laguna:  Filipino  fishermen,  177;  foreigners  engaged  in  the 
industry,  none  ;  capital  invested  in  the  industry,  P 48,026 ;  gross 
returns  in  1918,  p308,463;  gross  profit  in  1918,  P260,447. 

La  Union :  Filipino  fishermen,  85 ;  foreigners  engaged  in  the 
industry,  1;  capital  invested  in  the  industry,  P  52,237;  gross 
returns  in  1918,  P  122,876;  gross  profit  in  1918,  P  70,639. 

Leyte :  Filipino  fishermen,  219 ;  foreigners  engaged  in  the 
industry,  7;  capital  invested  in  the  industry,  P 213,651 ;  gross 
returns  in  1918,  P463,626;  gross  profits  in  1918,  p249,975. 

Pampanga :  Filipino  fishermen,  101 ;  foreigners  engaged  in  the 
industry,  none  ;  capital  invested  in  the  industry,  P  772,917  ;  gross 
returns  in  1918,  P  322,534.  (Much  of  the  capital  is  in  the  form 
of  real  estate  and  improvements  on  fish  farms.) 

Rizal :  Filipino  fishermen,  168 ;  foreigners  engaged  in  the  in- 
dustry, none;  capital  invested  in  the  industry,  P 874,956;  gross 
returns  in  1918,  P  449,294.  (Much  of  the  capital  is  in  the  form  of 
real  estate  and  improvements  on  fish  farms.) 

Sorsogon :  Filipino  fishermen,  169 ;  foreigners  engaged  in  the 
industry,  1;  capital  invested  in  the  industry,  P  66,864;  gross 
returns  in  1918,  P 260,236  ;   gross  profits  in  1918,  Pl93,372. 

In  all  these  provinces  the  capital  invested  includes  the  value  of 
real  estate  and  the  improvements  on  fish  farms.  This  being  a  fixed 
value  carried  over  from  year  to  year,  the  returns  on  the  investment 
for  1918  alone  are  considerably  more  than  the  P  453,930  reported. 

By  means  of  reports,  charts,  and  tables,  compare  the  fishing 
industries  of  these  various  provinces.  When  the  census  of  1918 
is  available  in  printed  form,  compare  the  fishing  data  of  all  the 
provinces  in  a  similar  way. 


CHAPTER  XVI 

FORESTEY 

Amount  and  Kind  of  Timber 

As  has  already  been  stated  in  the  discussion  of  the  soil,  it 
is  probable  that  the  entire  land  area  of  the  Philippines  was 
originally  covered  with  unbroken  forests.  The  second-growth 
forest,  the  grass,  and  the  cultivated  lands  are  due  to  the  clear- 
ing away  of  trees.  The  present  forest  area  is  approximately 
150,000  square  kilometers,  or  about  half  the  total  area  of  the 
Islands.  Of  these  100,000  square  kilometers,  or  about  one 
third  of  the  total  land,  consists  of  virgin  forest.  The  second- 
growth  forests  may  ultimately  become  of  commercial  value, 
but  at  the  present  time  they  warrant  small  consideration. 

In  spite  of  the  richness  of  the  Philippines  in  fine  woods  for 
furniture  the  real  wealth  of  the  commercial  forests  consists  in 
the  dipterocarps,  timber  for  structural  purposes,  such  as  the 
lauan,  apitong,  and  yacals.  There  are  two  reasons  for  this: 
first,  much  of  the  2,000,000,000  board  feet  of  standing  timber 
in  the  Philippines  is  made  up  of  the  dipterocarp  family ; 
secondly,  these  trees  occur  in  forests  sufficiently  heavy  to  be 
exploited  by  the  use  of  machinery,  while  the  trees  yielding 
fine  wood  for  furniture,  such  as  narra,  acle,  and  tindalo,  are 
scattered  here  and  there  among  trees  of  little  or  no  utility. 
The  lumber  output  of  the  Philippines  therefore  consists  prin- 
cipally of  lauan  and  such  structural  material  rather  than  of 
the  finer  woods  for  furniture. 

1  Unless  otherwise  noted,  most  of  the  data  for  this  chapter  is  taken  from 
"The  Forests  of  the  Philippines,"  Bulletin  No.  10,  Bureau  of  Forestry, 
Manila. 

347 


348  ECONOMIC  CONDITIONS 


Government  Regulation 


In  the  civilized  countries  of  the  world  the  governments  now 
regulate  the  utilization  of  the  forests,  and  protect  them  from 
fire  and  other  destructive  forces.  The  necessity  for  this  reg- 
ulation and  care  arises  from  several  causes: 

1.  Lumbermen,  if  left  to  themselves,  will  give  little  consid- 
eration to  the  reforestation  of  the  land  on  which  they  work. 
They  annihilate  whole  areas,  instead  of  cutting  and  utilizing 
only  the  mature  trees,  and  planting  new  trees  to  take  the 
place  of  those  removed.  If  unregulated  cutting  is  allowed, 
future  generations  will  be  left  without  a  supply  of  lumber. 
Government  regulation  prevents  deforestation. 

2.  Deforestation  also  causes  floods  and  the  destruction  of 
waterways  and  fertile  land.  The  dense  growth  of  trees  on 
mountain  slopes  tends  to  regulate  the  speed  with  which  water 
reaches  the  ground  and  flows  into  rivers.  In  forested  areas 
running  water  seeps  gradually  to  the  drainage  streams  and 
finds  its  way  in  even  flow  to  the  sea.  As  a  result,  destructive 
rushes  of  water  do  not  occur  in  the  lowlands,  and  the  rivers 
are  deep  enough  throughout  the  year  to  afford  navigation. 
Where  the  hills  and  mountains  are  denuded  of  their  forest, 
the  rain  is  not  regulated  in  its  fall  by  the  leaves,  nor  in  its 
flow  by  the  cover  of  leaves,  twigs,  and  other  forest  litter ;  it 
rushes  over  the  surface  of  the  ground  into  the  streams.  Dur- 
ing a  storm  the  rivers  flow  in  destructive  floods;  when  the 
rain  is  over,  they  fall  rapidly  and  become  too  shallow  for  navi- 
gation. Forests  hasten  the  making  of  soil  and  help  to  pre- 
serve it ;  floods  from  bare  hills  cover  the  valleys  with  gravel 
and  sand. 

Deforestation  in  the  Philippines  may  result  from  either  the 
kaingin  system  or  unregulated  lumbering. 

The  kaingin  system  of  agriculture  has  been  considered 
under  the  discussions  of  the  Subanuns  and  the  soil.  It  has 
already  caused  a  loss  of  millions  of  pesos  to  the  timber.  The 
making  of  kaingin  is  permitted,  under  certain  conditions,  on 


FORESTRY  349 

such  parts  of  the  public  land  as  are  more  valuable  for  agri- 
culture than  for  forestry.  The  enforcement  of  the  law  con- 
cerning the  making  of  kaingin  is  difficult,  however,  and  timber 
worth  millions  of  pesos  is  still  destroyed  annually. 

In  the  theory  of  government  regulation  the  government 
is  considered  the  owner  of  the  forests  and  the  products  of 
the  forests.  It  disposes  of  these  by  giving  them  away  or  by 
selling  them. 

For  domestic  purposes  all  second-growth  and  lower-group 
timbers  and  all  minor  products  can  be  obtained  free  of  charge 
and  without  license.  If  a  portion  of  the  public  forests,  known 
as  a  communal  forest,  is  set  aside,  the  inhabitants  of  a  town 
are  permitted  to  obtain  the  free  products  only  therein.  Under 
other  circumstances  licenses  must  be  obtained.  In  certain 
cases  licenses  are  issued  free  of  charge :  (1)  to  inhabitants  of 
the  Philippines  for  first-group  timbers  to  be  used  for  the  con- 
struction of  homes  of  strong  material;  (2)  to  miners  for  all 
forest  products  growing  on  their  claims  and  used  in  the  devel- 
opment of  their  mines ;  and  (3)  for  minor  products  and 
second-group  and  other  lower-group  timbers  to  be  used  in  the 
construction  of  public  works. 

Licenses  which  must  be  paid  for  are  four  in  number : 

1.  Miners  must  pay  for  timber  and  other  forest  products 
gathered  outside  of  their  claims  and  used  in  the  development 
of  their  mines,  but  the  amount  which  they  must  pay  is  only 
one  half  of  the  regular  sum. 

2.  Ordinary  licenses,  which  provide  for  the  collecting  of 
products  from  certain  definite  areas,  are  granted  for  a  term  of 
one,  two,  or  three  years,  and  are  renewable  at  their  expiration. 
Full  charges  are  made  for  these  licenses,  and  more  than  one 
license  may  be  given  to  exploit  the  same  area. 

3.  Exclusive  licenses  grant  to  a  single  person,  to  a  firm,  or 
to  a  corporation  the  exclusive  right  to  gather  forest  products 
from  a  particular  area. 

4;  Exclusive  license  agreements  are  granted  for  a  period 
of  not  more  than  twenty  years  for  large  areas  which  can 


350  ECONOMIC  CONDITIONS 

have  their  timber  cut  without  permanent  injury  to  the  forests. 
When  such  an  agreement  includes  more  than  a  thousand  hec- 
tares, the  concession  is  put  up  for  bid.  The  granting  of  such 
an  agreement  is  contingent  on  a  guarantee  that  an  efficient 
plant  will  be  installed,  and  that  a  certain  amount  of  develop- 
ment will  be  done  yearly.  In  this  way  it  is  impossible  for 
companies  or  individuals  to  obtain  forest  areas  for  the  purpose 
of  holding  them  as  investments  instead  of  exploiting  them. 

The  forest  operations  carried  on  under  license  are  regulated 
by  the  Bureau  of  Forestry.  On  land  which  is  more  valuable 
for  agriculture  than  for  forest  growth  clear  cutting  is  allowed. 
Where  the  land  is  more  valuable  for  forest  than  for  other 
purposes,  the  smaller  trees  and  a  sufficient  number  of  seed 
trees  must  be  left ;  in  certain  cases  it  is  not  permitted  to  cut 
definite  species  of  trees.  The  forestry  employees  also  see  that 
all  the  merchantable  timber  is  utilized,  that  the  stumps  are 
not  unnecessarily  high,  and  that  timber  is  not  abandoned  in 
the  forest. 

For  the  purpose  of  establishing  a  system  of  forest  charges, 
the  timbers  of  the  Philippines  are  divided  into  four  groups, 
and  a  decreasing  rate  by  the  cubic  meter  is  charged  according 
to  the  value  of  the  timber.  The  government  also  regulates 
the  gathering  of  minor  forest  products,  and  charges  ten  per  cent 
of  the  assessed  market  value  of  each  product. 

Logging  Operations 

In  general,  the  logging  operations  carried  on  in  the  Philip- 
pines are  of  two  kinds,  steam  logging  and  logging  on  a  small 
scale.  In  1917  there  were  1906  commercial  licenses  in  force, 
of  which  10  were  license  agreements,  117  licenses  for  1000 
cubic  meters  or  more,  and  the  remainder  for  less  than  1000 
cubic  meters.  Almost  a  thousand  licenses  were  for  less  than 
a  hundred  cubic  meters  each.  Thus  it  is  seen  that  the  majority 
of  the  licenses  are  granted  to  small  operators,  who  use  animal 
or  human  power  to  get  the  timber  to  tidewater. 


FORESTRY  361 

The  method  of  extracting  timber  by  carabaos  is  crude  and 
wasteful ;  in  connection  with  the  methods  of  obtaining  labor 
and  of  financing  the  enterprise  it  is  the  main  cause  of  the  high 
price  of  lumber  in  the  Philippine  market.  As  a  rule,  the  licen- 
see is  not  the  actual  workman.  He  seldom  or  never  visits  the 
forest,  but  furnishes  a  follower  or  friend  with  carabaos  and 
other  equipment,  and  receives  a  certain  percentage  of  the 
value  of  the  logs  hauled  to  the  beach.  This  follower  or  friend 
selects  the  woodmen,  and  pays  a  stipulated  amount  for  the 
timber  delivered  on  the  beach. 

The  pernicious  system  of  advancing  money  and  provisions, 
which  applies  to  all  Philippine  industries,  is  also  found  in 
logging  operations,  and  the  laborers  are  usually  kept  in  debt 
to  the  men  for  whom  they  work.  With  the  growth  of  the  lum- 
ber industry  such  methods  are  fortunately  going  out  of  use. 
In  many  instances  the  licensee  is  the  lumberman,  who  pays  his 
workmen  a  direct  wage  and  treats  them  fairly.  So  long  as  the 
former  system  exists,  however,  and  the  actual  cutting  of  timber 
in  the  woods  is  left  to  ignorant  workmen  without  supervision, 
the  cost  of  timber  for  structural  purposes  will  be  abnormally 
high.  What  is  needed  more  than  anything  else  in  small  for- 
estry operations  in  the  Philippines  is  competent  supervision  of 
logging.  With  such  supervision  the  cost  of  cutting  timber  and 
removing  it  to  tidewater  could  be  reduced  by  at  least  a  half. 

Certain  portions  of  the  Philippine  forests  are  adapted  to 
small  logging  operations  by  animal  power  rather  than  to  exten- 
sive operations  by  steam  power.  The  former  will  persist,  and 
will  be  found  profitable  in  isolated  patches  of  the  dipterocarp 
types,  and  in  patches  of  the  molave  type,  where  valuable  trees 
are  too  far  apart  to  warrant  the  establishment  of  extensive 
machinery. 

Several  exclusive  license  agreements  have  been  given  to 
large  companies  using  steam-logging  methods  and  railroads 
to  transport  the  logs  from  the  forest  to  the  mills  at  tidewater. 
These  companies  exploit  large  areas  containing  close  forests 
of  merchantable  timber,  composed  principally  of  lauan  and 


352  ECONOMIC  CONDITIONS 

other  trees  of  the  dipterocarp  family.  There  are  numerous 
forests  m  which  such  large  operations  can  be  carried  on ;  in 
the  near  future  it  is  probable  that  many  more  companies  will 
invest  m  this  industry.  Such  logging  and  milling  operations 
require  a  large  amount  of  capital,  of  course,  and  are  therefore 
carried  on  by  corporations.  The  larger  of  these  companies 
employ  as  many  as  twelve  hundred  laborers,  most  of  whom 
must  be  brought  in.  It  is  therefore  necessary  for  a  company 
of  this  kind  to  build  a  barrio  capable  of  holding  at  least  ten 
thousand  persons.  The  labor  problem  in  forest  operations  does 
not  seem  to  be  difficult ;  for  the  supply  is  equal  to  the  demand. 
These  large  lumber  companies  are  of  great  economic  value 
to  the  Philippines,  since  they  supply  the  home  market  with 
lumber  which  otherwise  would  have  to  be  imported  from 
America.  Without  the  exploitation  of  the  large  forests  the 
mature  timber  goes  to  waste,  because  the  small  licensees  are 
unable  to  get  it  out.  By  close  government  supervision  the 
mature  trees  are  utilized,  and  the  forests  are  improved,  so  that 
they  become  a  constant  supply  of  commercial  timber. 

Milling  Operations 

In  milling  operations  two  methods  are  to  be  noted,  hand 
sawing  and  steam  milling.  At  the  present  time  hand-sawed 
lumber  can  compete  successfully  with  the  product  of  steam 
mills.  The  hand  sawer  is  often  able  to  get  nine  or  ten  board 
feet  from  each  cubic  foot  of  lumber;  the  steam  mills  cut  five, 
six,  or  seven  board  feet  from  the  same  amount  of  raw  product. 
Moreover,  all  the  waste  from  hand  sawing  is  carefully  utilized 
either  for  firewood  or  for  other  purposes.  The  steam-sawed 
material,  on  the  other  hand,  is  all  of  standard  size,  and  large 
contractors  prefer  to  use  it  rather  than  the  irregular-sized  lum- 
ber from  whipsawing.  If  it  were  not  for  this  irregularity  in  size 
and  the  scarcity  of  whipsawers,  the  hand-sawed  material  would 
become  a  more  formidable  competitor  with  the  lumber  from 
the  steam  sawmill. 


Animal  Power 


Steam  Power 
LOGGING  OPERATIONS 


354  ECONOMIC  CONDITIONS 

Problems  of  the  Lumber  Industry 

The  problems  connected  with  the  production  of  lumber  in 
the  Philippines  are  as  follows: 

1.  To  overcome  the  high  cost  of  logging  in  operations 
carried  on  by  small  licensees.  The  high  cost  can  be  reduced 
by  having  paid  laborers,  better  supervision,  and  reform  in  the 
present  crude  methods  and  equipment  employed. 

2.  To  reduce  the  high  cost  of  milling  by  better  equipment 
and  better  arrangement  of  the  mills  now  used,  by  bringing  in 
or  training  competent  men  to  manage  the  operations,  and  by 
reducing  the  excessive  waste  in  the  steam  mills. 

3.  To  lower  the  high  cost  of  transportation  (which  is  due 
to  the  exorbitant  charges  made  by  shipping  firms)  by  increas- 
ing the  number  of  boats  in  the  Philippines,  and  consequently 
by  increasing  competition  in  the  carrying  trade. 

These  problems  are  distinctively  of  a  pioneer  nature,  and 
will  be  solved  in  time. 

Markets  for  Philippine  Lumber 

There  are  three  markets  for  Philippine  lumber.  During 
the  year  1917  the  commercial  timber  produced  in  the  Philip- 
pines amounted  to  approximately  370,000  cubic  meters,  or 
160,000,000  board  feet.  This  was  enough  to  satisfy  the  needs 
of  the  Islands  except  a  little  timber  and  lumber  for  special 
purposes,  which  was  imported.  Thus  it  will  be  seen  that  the 
local  market  in  the  Philippines  is  now  supplied  from  domestic 
timber.  This  condition  did  not  exist  several  years  ago ;  for 
as  late  as  1910  the  Islands  were  importing  almost  a  third  of 
their  commercial  lumber.  Meanwhile  the  domestic  demand 
for  lumber  has  greatly  increased.  The  establishment  of  sugar 
centrals,  coconut-oil  mills,  and  other  industrial  enterprises, 
along  with  the  prosperity  which  they  have  brought,  has  in- 
creased the  demand  for  lumber,*  year  after  year.  The  increase 
in  the  annual  production  of  timber  extending  over  a  period  of 
years  is  noted  in  the  following  table : 


FORESTRY 


355 


Utilization  of  Forest  Products  from  Private  and  Public 

Forests 

[Source :  Bureau  of  Forestry] 


Fiscal  Year 

Timber 

First  Group  2 

Lower  Groups  3 

Total 

1908 

Cu.  m. 
25,586 
35,357 
31,962 
39,312 
52,091 
59,422 
23,751 
55,798 
52,512 
55,060 
51,431 

Cu.  m. 

78,692 
108,404 
121,656 
145,316 
172,856 
217,749 

77,752 
241,297 
226,483 
288,958 
318,700 

Cu.  m. 
104,278 

1909 

143,761 
153,618 
184,628 
224,947 
277,171 
101,503 

1910. 

1911 

1912 

1913 

19131  

1914 

297,095 

1915 

278,995 
344,018 
370,131 

1916 

1917 

The  production  of  1917  does  not  represent  the  limits  of  the 
domestic  market.  The  output  of  1917  sold  for  record-breaking 
war  prices ;  with  lower  prices  the  amount  of  lumber  used  in 
the  Islands  will  greatly  increase,  for  hard  construction  will 
take  the  place  of  bamboo  and  nipa  to  an  increasingly  greater 
extent.  Nevertheless,  the  question  of  foreign  market  is  one 
which  may  at  some  time  become  of  considerable  importance. 

1  July  1  to  December  31,  1913. 

2  First  group :  acle,  baticulin,  betis,  camagon,  ebony,  ipil,  lanete,  mancono, 

molave,  narra,  tindalo,  and  yacal. 
2  Lower  groups : 

Second    group :    alupag,    aranga,    banaba,    bansalaguin,    banuyo, 

batitinan,    bolongeta,    calamansanay,    calantas,    dungon,   guijo, 

macaasin,    malacadios,   mangachapuy,  palo    maria,  supa,  teak, 

and  tucan-calao. 
Third  group :  agoho,  amuguis,  anubing,  apitong,  batino,  bitanghol, 

catmon,  calumpit,  dalinsi,  dita,  duhgon-late,  malacmalac,  mala- 

papaya,    malasantol,    mayapis,    nato,    palosapis,   panao,    sacat, 

santol,  tamayuan,   and   tanguile. 
Fourth  group:    all  species  which  are  not  included  in  any  of  the 

other  groups. 


356  ECONOMIC  CONDITIONS 

Should  the  local  demand  for  lumber  become  satisfied,  Phil- 
ippine timbers  will  find  an  excellent  market  in  China,  where 
their  reputation  is  good,  and  where  the  demand  for  lumber 
is  enormous.  At  the  present  time  there  is  a  small  export  of 
lumber,  principally  to  China  and  the  United  States;  in  1918 
it  amounted  to  about  ten  thousand  cubic  meters. 

The  total  consumption  of  commercial  lumber  in  the  Philip- 
pines (375,000  cubic  meters),  as  compared  with  that  of  other 
countries,  is  small.  The  possibilities  of  the  lumber  industry 
here  are  great,  however,  for  large  tracts  of  virgin  forest  are 
available.  The  thing  most  needed  is  capital.  It  is  estimated 
that  the  forests  of  the  Philippines  could,  without  injury  to 
them,  yield  5,000,000  cubic  meters  of  lumber  annually,  or 
about  thirteen  times  as  much  as  they  now  yield.  Although 
there  is  prospect  of  the  full  utilization  of  this  wealth  in  the 
immediate  future,  it  is  nevertheless  probable  that  if  present 
investments  continue,  the  next  fifteen  years  will  witness  an 
output  of  more  than  1,000,000  cubic  meters  yearly. 

Minor  Forest  Products 

Minor  forest  products  are  also  of  considerable  importance. 
The  fuel  used  in  Philippine  households,  and  to  some  extent 
in  commercial  enterprises,  is  wood.  Most  of  it  is  obtained  from 
the  forests  of  mangrove,  which  makes  excellent  firewood.  Char- 
coal is  another  important  product.  A  considerable  amount  of 
tan  and  dye  bark  is  now  gathered  from  Philippine  mangrove 
forests.  The  possibility  of  extracting  cutch  from  mangrove 
bark  is  worthy  of  careful  consideration.  The  importance  of 
rattan  and  bamboo  used  in  the  construction  of  houses  and  for 
numerous  minor  purposes  places  these  two  forest  products 
among  the  most  important  for  domestic  use.  The  amount  of 
rattan  formerly  produced  in  the  Philippines  was  not  enough 
to  supply  the  local  demand,  and  a  considerable  amount  was 
annually  imported.  During  the  World  War,  however,  lack  of 
imported   supplies   stimulated   local   production.    The   local 


FORESTRY  857 

production  of  rattan  is  now  large,  and  may  continue.  At 
the  present  time  rattan  is  chiefly  gathered  by  the  wild  tribes 
and  the  hill  people,  from  whom  the  lowlanders  obtain  it  by 
trade.  The  amount  and  quality  of  rattan  existing  in  the 
Islands  warrant  the  gathering  of  it  for  export  to  Europe  and 
America.  The  demand  for  bamboo  is  supplied  almost  entirely 
from  uncultivated  clumps,  although  this  giant  grass  is  often 
planted.  The  planting  of  bamboo  for  commercial  purposes  is 
warranted  by  its  present  high  price. 

The  principal  minor  forest  products  gathered  for  export 
are  gutta-percha,  resins  (particularly  almaciga),  beeswax, 
candlenuts,  and  dye  woods  (particularly  sappan).  Nearly  all 
of  these  are  obtained  by  trade  with  the  wild  tribes  and  the 
hill  people. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  Regulations  of  the  Philippine  government  with  respect  to 
the  preservation  of  Philippine  forests. 

2.  Explain  how  the  local  production  of  Imnber  for  domestic 
consumption  has  increased  the  wealth  of  the  Philippines. 

3.  Explain  the  relation  of  the  domestic  lumber  market  to  our 
export  markets  for  lumber. 

Suggestions  for  the  Study  oe  Local  Conditions 

1.  Local  opportunities  for  reforestation. 

2.  Local  sources  of  lumber.  3.  Some  local  manufactures  of  wood. 

4.  Compare  the  cost  of  a  hard-construction  and  a  bamboo  house 
of  the  same  size.  5.  Do  you  think  that  hardwood  houses  will  ever 
be  within  the  financial  means  of  the  majority  of  the  people  in  your 
community  ?  6.  Is  there  now  a  tendency  to  substitute  wooden 
houses  for  bamboo?  7.  Would  this  tendency  be  increased  if 
lumber  were  cheaper  ?  8.  What  effect  has  this  on  the  risk  of  fire  ? 
9.  Which  construction  makes  the  more  healthful  home  ?  10.  What 
are  the  comparative  ages  of  a  bamboo  and  a  wooden  house  ? 


358  ECONOMIC  CONDITIONS 


Suggestions  for  Reports  from  References 

1.  The  results  of  deforestation  in  China. 

2.  A  modern  lumber  mill.  3.  Modern  logging  operations. 
4.  Lumber  and  paper.  (Bishop  and  Keller  and  other  commercial 
geographies.) 

5.  Forest  areas  of  the  Philippines. 

6.  Control  of  the  Bureau  of  Forestry  over  the  cutting  of 
Philippine  timber.  7.  The  grading  of  timber.  8.  The  gathering 
of  minor  forest  products.  9.  Forest  zones,  reserves,  and  commercial 
forests. 

10.  The  grouping  of  Philippine  commercial  woods  (illustrated 
with  samples). 

11.  Building  wooden  ships  in  the  Philippines. 

12.  Relation  of  forests  to  mining. 

13.  The  lumber  industry  in  the  Philippines  (illustrated  with 
charts  showing  the  chief  provinces  in  which  lumber  is  produced, 
and  the  principal  kinds  of  lumber  manufactured). 

14.  From  the  annual  figures  of  the  production  of  timber,  on 
page  355,  and  the  annual  report  of  the  Director  of  Forestry, 
make  a  chart  showing  graphically  the  increase  of  the  commercial 
timber  industry  of  the  Philippines. 

15.  Philippine  minor  forest  products.  16.  How,  when,  and 
where  they  are  produced.    17.  The  importance  and  use  of  each. 

18.  The  possibilities  of  manufacturing  cutch  in  the  Philippines. 
(Miller.) 

19.  Forests  and  forest  products  of  the  United  States.  20.  Kinds 
of  lumber  obtained.  21.  For  what  purposes  the  United  States 
uses  Philippine  woods.  (All  commercial  geographies  ;  the  annual 
reports  of  the  Director  of  Forestry  and  Internal  Revenue  should 
also  be  consulted.) 


CHAPTER  XVII 

MANUFACTURING 

Density  of  Population  ;  Commerce  and  Industry  i 

The  density  of  the  population  of  a  country  is  reckoned  in 
terms  of  the  population  divided  by  the  total  area.  The  density 
of  the  population  of  the  Philippines  and  of  various  other 
agricultural  countries  is  shovv^n  in  the  following  table: 

Australia 1.5  to  the  square  mile 

Brazil 8  to  the  square  mile 

Mexico 20  to  the  square  mile 

Siam       30  to  the  square  mile 

Cuba 55  to  the  square  mile 

Philippines 87  to  the  square  mile 

India 200  to  the  square  mile 

Straits  Settlements 350  to  the  square  mile 

China  proper 500  to  the  square  mile 

Java 600  to  the  square  mile 

1  The  question  of  the  density  of  population  is  important  with  respect  to  the 
supply  of  food  and  the  character  of  production.  For  example,  there  are  five 
men,  each  having  two  hectares  of  land,  which  lie  in  juxtaposition  and  are  of 
equal  fertility.  Suppose  that  these  five  pieces  of  land  are  joined  to  make 
one  farm,  to  be  worked  by  the  five  men.  On  account  of  the  division  of 
labor  thus  made  possible  the  crop  from  the  ten  hectares  will  be  greater  than 
if  each  man  had  worked  by  himself  ;  therefore  tlie  share  of  each  man  will 
be  greater.  Suppose  that  two  more  men  are  added.  Since  a  greater  division 
of  labor  can  be  carried  out  by  the  seven  men,  the  total  amount  of  produce 
will  again  be  greater,  and  the  share  of  each  laborer  will  be  larger.  Suppose 
that  two  more  men  are  added.  Then,  on  account  of  the  increase  of  labor  on 
the  land,  and  the  greater  subdivision  of  labor,  the  gross  production  will  again 
be  increased  ;  but  since  the  limit  of  the  chemical  and  physical  capabilities 
of  the  soil  has  been  passed,  the  share  of  each  laborer  will  be  less.  In  the 
same  way,  for  each  laborer  added  the  gross  production  will  be  greater,  and 
the  proportional  production  will  be  less.  The  more  labor  put  on  a  given 
piece  of  land,  the  greater  will  be  the  gross  production  from  it,  and  the 

359 


360  ECONOMIC  CONDITIONS 

In  comparison  with  many  countries,  especially  agricultural 
countries  like  China  and  Java,  the  Philippines  are  sparsely 
populated.  In  no  districts  are  there  such  conditions  of  famine 
as  exist  in  parts  of  India  and  China,  where  dense  populations 
live  on  the  verge  of  starvation,  and  the  failure  of  crops  results 
in  thousands  of  deaths.  The  Philippines  are  still  below  the 
point  of  diminishing  returns  from  land.  As  a  whole,  they 
need  greater  population.  In  1800  Java  had  twice  as  many 
inhabitants  as  the  Philippines,  but  in  1900  it  had  four  times 
as  many.  This  difference  in  the  rates  of  increase  has  probably 
resulted  from  the  high  infant  mortality  in  the  Philippines  (as 
explained  in  Chapter  XIII).  It  is  probable,  however,  that  the 
rate  of  increase  in  the  Philippines  is  greater  now  than  it  has 
been  in  previous  times. 

The  PhiHppines  are  not  evenly  populated  (the  different 
densities  are  indicated  on  Chart  XXXIV).  Several  regions 
with  rich  soils  are  heavily  populated ;  some  regions,  such  as 
the  Ilocos  provinces  and  Cebu,  have  a  large  population  in  pro- 
portion to  the  fertility  of  the  soil  and  the  amount  of  arable 
land.  In  1903  Ilocos  Sur  Province  had  a  density  of  400  in- 
habitants to  the  square  mile,  Cebu  340,  and  Pangasinan  335. 
On  the  other  hand,  vast  amounts  of  fertile  lands  are  not 
occupied,  and  many  fertile  regions  are  but  sparsely  settled. 

greater  the  proportional  return  up  to  a  certain  point.  After  tliat  point  has 
been  reached,  the  more  labor  put  on  the  given  piece  of  land  the  greater  will 
be  the  gross  production,  but  the  less  will  be  the  proportional  return.  This  is 
known  as  the  law  of  diminishing  returns  from  land. 

The  same  law  which  applies  to  a  small  portion  of  land  holds  good  for  a 
large  portion.  Hence  in  any  given  agricultural  community,  after  a  certain 
population  is  reached,  the  law  of  diminishing  returns  causes  the  supply  of 
food  to  increase  more  slowly  than  the  population  increases.  The  law  of 
.Malihus  is  that  population  tends  to  increase  faster  than  food.  Any  check 
on  population,  or  any  increase  in  the  supply  of  food,  diminishes  the  degree 
to  which  the  law  operates  in  a  given  region.  The  checks  to  population  are 
(1)  later  marriage  and  fewer  children  to  the  family  ;  (2)  war,  famine,  and 
pestilence  ;  and  (3)  emigration.  Increase  in  the  supply  of  food  may  result 
from  (1)  improved  means  of  agriculture,  which  increases  the  production 
per  hectare ;  (2)  processes  which  make  food  products  more  nourishing  ; 
(3)  manufacturing  and  commerce,  the  products  of  which  are  exchanged 
for  food. 


MANUFACTURING  361 

The  three  regions  in  which  the  pressure  of  population  is 
most  greatly  felt  are  (1)  the  Ilocano  provinces,  (2)  Taal  and 
Lemery  in  Batangas  Province,  and  (3)  Cebu,  Bohol,  Siquijor, 
and  parts  of  Oriental  Negros.  These  and  the  regions  in  which 
emigrants  from  them  settle  are  indicated  on  Chart  XXXV. 
Other  emigrations  are  from  the  Batan  Islands  to  Luzon  ;  from 
parts  of  Pangasinan  to  Tayabas ;  from  parts  of  Bulacan  to 
Tarlac  and  Nueva  Ecija ;  from  central  Camarines  and  central 
Albay  to  northern  Camarines,  Catanduanes,  Sorsogon,  and 
Masbate ;  Ilongos  from  Panay  to  Xegros ;  and  from  Cuyo  to 
Palawan.  In  addition,  government  labor  agencies  have  ob- 
tained laborers  from  Manila,  Cebu,  Iloilo,  Bohol,  and  Antique 
for  Tarlac,  Bataan,  Mindoro,  Mindanao,  and  Negros.  In  the 
past  there  has  been  too  little  emigration  from  the  more  crowded 
districts.  In  some  places  this  results  from  the  antipathy  of 
the  people  and  a  low  standard  of  living.  Many  laborers  have 
not  cared  to  leave  their  homes  because  of  fear  for  their  personal 
safety  and  the  safety  of  property  and  relatives  left  behind,  but 
this  is  being  remedied  by  peace  conditions  and  better  means 
of  communication.  Fear  of  Moros  and  semicivilized  tribes 
still  deters  some  from  going  to  Mindanao.  The  clan  feeling 
keeps  many  people  in  the  place  of  their  birth,  even  when 
they  realize  that  they  could  make  a  better  living  elsewhere. 
Furthermore,  there  has  been  opposition  ''  by  many  landowners 
doubtless  guided,  rather  than  by  solicitude  for  the  public 
welfare,  by  purely  selfish  motives,  such  as  the  desire  to  have 
a  constant  supply  of  cheap  labor,  available  for  their  own  pri- 
vate work ;  cheap  labor,  thanks  to  the  abundance  of  laborers 
in  their  respective  pueblos."  ^ 

Immigrants  from  the  densely  populated  parts  of  the  Islands 
are  considered  more  industrious  than  the  people  among  whom 
they  settle.  Many  immigrants,  particularly  the  Ilocanos,  buy 
or  homestead  land,  or  become  squatters ;  others  become  tenants 
or  laborers,  and  often  finally  accumulate  enough  money  to  buy 
land  and  work  animals.     Many  return  to  the  place  of  their 

^  The  quotation  is  from  the  report  of  tlie  Director  of  Labor,  1011. 


CHART  XXXIV 


PHILIPPINE  ISLANDS 

Hf     Emigration  Areas 
Immigrration  Regions  being 
settled  by  Peoples  from 

IIIIIIIH     Ilocos  Provinces 

11     Taal,  Lemery  &  Cavite 

^^^     Cebu,  Bohol  &  Siquijor 

(Data  from  Economic  Reporte, 
Bureau  of  Education ) 


r^ 


CHART  XXXV 


364  ECONOMIC  COI^DITIONS 

birth  after  they  have  succeeded  in  acquiring  a  little  property. 
This  is  especially  true  of  the  Ilocanos  and  Taalenos. 

In  several  densely  populated  regions  tlie  additional  income 
obtained  from  commerce  and  manufacture  supports  a  much 
larger  population  than  could  exist  by  agriculture  alone.  These 
regions  are  parts  of  the  Ilocano  provinces  and  Bulacan,  the 
Taal-Lemery  district  of  Batangas,  Lucban  in  Tayabas  Prov- 
ince, and  parts  of  Cebu  Province  and  Bohol.  In  all  these 
regions  there  are  people  dependent  wholly  or  in  part  on  man- 
ufacture. There  are  other  places,  not  affected  by  pressure  of 
population,  in  which  the  failure  of  crops  led  to  manufacture. 
The  weaving  industry  of  Lipa,  in  Batangas  Province,  dates 
from  the  failure  of  the  coffee  crop ;  the  extensive  production 
of  mats  in  Basey  is  the  result  of  the  typhoons  which  destroyed 
the  rice  and  coconut  crops.  In  general,  manufacture  is  stimu- 
lated by  a  reduction  of  the  harvest.  Sometimes,  as  in  the 
Romblon  mat  weaving,  the  output  of  manufactured  articles 
decreases  when  returns  from  agriculture  again  become  normal ; 
but  in  many  places  the  impetus  of  short  crops  has  resulted  in 
established  industries.  Where  large  holdings  exist  the  land- 
less population  sometimes  becomes  dependent  on  manufacture 
alone,  as  in  the  case  of  the  chinela  makers  and  shoemakers 
of  Mariquina,  in  Rizal. 

In  most  cases  the  incentive  which  results  in  manufacture  is 
the  desire  for  a  larger  income  than  can  be  made  from  agri- 
culture, money  to  be  spent  for  amusements,  better  clothing, 
the  education  of  the  children,  and  the  purchase  of  land  and 
work  animals.  The  tenant  or  peasant  proprietor  obtains  from 
his  small  plot  enough  produce  to  sustain  him  and  his  family. 
Returns  from  domestic  manufactures  often  provide  the  only 
income.  Families  pursuing  household  crafts  usually  have  a 
higher  standard  of  living  than  those  depending  entirely  on 
agriculture.  This  peculiar  relation  of  agriculture  and  industry 
is  due  to  the  periods  of  rest  between  agricultural  activities 
(especially  between  harvest  and  planting,  and  planting  and 
harvest),  when  the  agriculturists  are  not  busy  in  the  fields. 


MANUFACTURING  365 

It  is  chiefly  the  women  and  children  who  utilize  these  in- 
tervals in  manufacturing,  at  the  same  time  performing  their 
regular  duties  of  the  household.  The  men  are  idle,  or  engage 
in  fishing,  driving,  or  daily  labor  for  other  persons.  Some- 
times they  obtain  and  prepare  the  raw  material  for  the  women, 
such  as  the  bamboo  splints  for  hats,  the  clay  for  pottery,  and 
so  on.  The  children  perform  the  coarser  work,  and  learn  their 
mother's  trade  by  assisting  her.  The  old  and  crippled  often 
devote  their  time  to  manufacture. 


Household  or  Domestic  Manufacture 

1.  The  beginnings  of  manufacture  are  found  m  the  attempt 
to  provide  the  home  with  certain  products  made  from  raw 
materials.  In  the  Philippines,  houseivork^  as  it  is  called,  takes 
the  form  of  making  the  following  articles :  cotton,  banana,  pine- 
apple, jusi,  and  abaca  cloth ;  rice  and  winnowing  baskets ;  fish 
baskets ;  fishnets ;  bamboo  and  rattan  chairs  ;  rope ;  mats ; 
kitchen  utensils  ;  hats ;  pottery  ;  hammocks  ;  saddles ;  sieves  ; 
boats ;  harness  ;  plows  ;  harrows  ;  wooden  furniture ;  brooms  ; 
and  rice  mills  and  mortars. 

2.  The  next  stage  in  manufacture  results  from  the  different 
degrees  of  efficiency  of  the  Avorkers.  Some  become  more  ex- 
pert than  others,  and  their  product  is  admired  and  desired. 
They  begin  to  produce  for  exchange,  especially  when  their 
landholdings  become  small.  Wagework  ^  is  carried  on  when 
the  consumer  of  the  article  furnishes  the  laborer  with  mate- 
rial and  a  wage.  In  the  Philippines,  pottery,  textiles,  nets, 
bolos,  steel  articles,  gold  and  silver  jewelry,  mats,  embroidery, 
furniture,  agricultural  implements,  and  carving  are  the  most 
important  of  the  articles  so  made.  The  workers  usually  labor 
at  home,  but  sometimes,  as  in  the  case  of  weavers,  they  work 
in  the  house  of  their  employer.  Some  wage  workers  become 
dependent  on  manufacturing. 

1  The  terminology  used  is  Buecher's. 


366  ECONOMIC  CONDITIONS 

3.  In  the  handicraft  stage  the  laborers  produce  articles  from 
their  own  material,  in  anticipation  of  a  demand  for  them,  or 
to  order.  In  either  case  the  product  is  sold  to  the  consumer. 
The  articles  previously  enumerated  are  made  by  handicrafts- 
men. The  producers  dispose  of  their  wares  in  various  ways. 
Some  sell  them  in  their  homes,  some  have  small  stores,  others 
vend  them  in  the  local  market.  Some  carry  their  product  to 
neighboring  towns  on  market  days,  or  travel  from  house  to 
house.  Occasionally  articles  are  gathered  and  kept  for  disposal 
at  a  fair,  such  as  the  mats  of  Tanay,  in  Rizal,  which  are  sold 
at  the  Antipolo  festival. 

4.  As  soon  as  industry  grows  to  national  and  international 
proportions,  the  middleman  comes  between  the  producer  and 
the  consumer.  In  household  production  this  is  known  as  the 
commission  system.  The  producer  no  longer  looks  for  the  con- 
sumer. The  merchant  finds  and  organizes  the  market,  deter- 
mines its  needs,  and  indicates  the  nature  of  the  products 
desired.  In  the  Philippines  the  principal  articles  made  and 
sold  under  the  commission  system  are  hats,  mats,  sinamay, 
cotton  cloths,  baskets,  pottery,  sawali,  buri  sacks,  bolos  and 
other  products  of  iron  and  steel,  rope,  embroidery,  chinelas, 
shoes,  and  knotted  abaca.  Most  of  the  embroidery  and  knotted 
abaca  and  many  of  the  hats  are  produced  for  export;  the 
other  products  are  for  the  most  part  consumed  in  the  domestic 
markets. 

In  a  few  instances  these  products  are  accumulated  in  the 
home,  and  finally  given  to  somebody  to  sell  on  commission. 
Sometimes,  as  with  Calasiao  hats  a  member  of  the  family  takes 
the  wares  to  a  retailer  or  exporter.  Often  the  producers  sell 
for  cash  to  a  regular  merchant  or  agent.  The  advance  and 
debt  system  is  also  found  in  commission  household  manufac- 
ture. Often  the  merchant  advances  the  raw  material ;  some- 
times he  advances  money,  food,  and  other  things  in  anticipation 
of  goods  ;  sometimes  he  owns  the  looms  and  other  implements 
with  which  the  work  is  done.  The  condition  of  the  housework 
laborers  under  such  an  advance  and  debt  system  is  often  as 


MANUFACTURING  367 

bad  as  that  of  agricultural  workers  under  the  kasama  system. 
They  are  subservient  to  the  will  of  the  merchant  who  controls 
their  labor  and  output.  In  most  towns  there  are  local  brokers 
or  agents  who  gather  up  the  product  of  the  place  and  dispose 
of  it  to  general  brokers,  domestic  dealers,  or  exporters.  In 
some  towns  two  or  three  of  these  persons  control  the  industry. 
When  not  effected  through  export  houses  closely  in  touch  with 
the  trade,  such  control  sometimes  causes  inertness,  as  is  the 
case  in  the  sabutan-hat  industry  of  certain  towns  in  Laguna 
Province.  For  the  export  trade  the  form  and  quality  of  the 
output  is  very  important,  and  is  subject  to  change  of  fashions 
in  foreign  countries.  Export  houses  control  these  matters 
through  the  brokers  and  agents ;  in  certain  new  industries 
they  place  the  monopoly  of  buying  in  the  hands  of  a  few  per- 
sons, to  exercise  better  supervision  over  the  workers.  Where 
there  are  independent  peasant  proprietors,  and  where  wage- 
work  and  handicrafts  coexist  with  commission  work,  so  that 
the  producer  may  sell  direct  to  the  consumer,  control  by 
middlemen  is  at  a  minimum.  This  is  also  true  of  towns  pro- 
ducing and  exporting  articles  for  which  there  is  sharp  com- 
petition. This  is  seen  among  the  Ilocano  peasant  proprietors, 
and  in  the  buntal-hat  trade  of  Lucban,  in  Tayabas,  and  the; 
knotted-abaca  industry  of  Lipa,  in  Batangas. 

Export  demand  often  causes  an  industry  to  be  carried  on 
under  the  commission  system  only.  Usually,  however,  the 
community  of  manufacture  is  built  up  on  all  the  different 
systems.  The  needs  of  the  consumer  or  of  the  worker  seem 
to  determine  which  of  the  systems  is  used ;  the  same  worker 
may  be  under  each  of  the  different  systems  at  different  times. 
For  example,  a  mat  maker  may  use  the  mat  he  makes  (house- 
work) ;  he  may  make  a  mat  to  order  for  some  other  person 
from  materials  furnished  by  the  latter  (wagework)  ;  he  may 
make  a  mat  from  his  own  materials  and  sell  it  to  the  consumer 
(handicraft) ;  finally,  he  may  make  a  mat  and  sell  it  to  a 
merchant,  who  again  sells  it  locally  or  ships  it  away  (commis- 
sion system).    All  four  systems  usually  exist  together,  and 


368  ECONOMIC  CONDITIONS 

the  one  used  at  any  particular  time  seems  to  depend  on  the 
demand  for  the  articles  and  the  needs  of  the  workers. 

The  wage  received  in  commission  work  depends  on  the 
demand  for  the  article  manufactured  and  the  mfluence  of 
brokers.  In  certain  textile  industries  of  Iloilo,  where  the 
weavers  are  largely  controlled  by  brokers  and  the  product 
competes  with  imported,  machme-made  cloths,  the  wage  is 
estimated  at  P0.09  or  PO.IO.  Here  the  worker,  if  dependent 
on  weaving  alone,  is  apt  to  sink  deeper  and  deeper  in  debt 
to  the  broker.  Usually  the  wage  is  the  same  as  that  received 
in  agriculture,  from  P0.30  to  F0.60  a  day.  The  wage  is 
highest  in  the  industries  producing  chiefly  for  foreign  demand, 
which  is  not  easily  controlled  by  brokers.  The  hat  weavers 
of  Lucban  make  from  P0.50  to  Pi. 20  a  day;  the  workers  in 
knotted  abaca  often  clear  more  than  ?1  when  prices  are  high. 

The  value  of  household  products  consumed  in  the  Islands 
has  not  been  determined.  Thousands  of  yards  of  cloth  are 
woven  and  used  annually.  In  several  towns  almost  every 
house  has  a  loom.  Thousands  of  hats  and  mats  are  annually 
disposed  of  in  the  local  market.  Practically  all  the  pottery 
used  is  of  domestic  manufacture.  In  1918  hats  valued  at 
more  than  pi, 800,000  were  exported,  knotted  abaca  valued 
at  more  than  Pi, 000,000,  embroidery  valued  at  more  than 
P4, 300,000,  and  laces,  textiles,  baskets,  and  the  like  in  smaller 
amounts.  In  comparison  with  the  millions  of  pesos'  worth  of 
household  manufactures  annually  consumed  in  and  exported 
from  the  countries  of  Europe,  Japan,  and  China  the  output 
of  Philippine  households  is  small.  When  Europeans  first  came 
to  the  Islands,  the  natives  already  practiced  hand  weaving, 
loom  weaving,  and  other  arts;  the  newcomers  taught  them 
crafts,  such  as  embroidery,  wood  carving,  and  metal  work. 
That  these  industries  have  not  grown  to  greater  proportions 
is  due  (1)  to  the  lack  of  the  industrial  and  commercial  idea ; 

(2)  to  the  localization  of  industries  in  one  barrio  or  town ; 

(3)  to  the  lack  of  improvement  in  methods ;  and  (4)  to  the 
lack  of  a  market. 


Hat  Weaving 


Loom  Weaving 
TWO  PHILIPPINE  HOUSEHOLD  INDUSTRIES 


370  ECONOMIC  CONDITIONS 

In  the  last  few  years  the  production  of  household  industries 
has  been  increasing.  It  can  be  measured  in  the  foreign  trade 
by  the  export  of  hats,  which  was  less  than  200,000  in  1907 
and  more  than  1,600,000  in  1912;  and  by  the  export  of 
embroidery,  which  was  almost  nothing  in  1912,  and  amounted 
to  more  than  P4,000,000  in  1918.  Greater  production  of  com- 
mercial goods  in  the  home  is  coming  about  as  the  result  of  the 
industrial  and  commercial  idea  now  felt  in  the  Philippines. 
The  established  industries  are  spreading  beyond  the  limits  of 
the  barrios  and  towns,  to  which  a  certain  immobility  has  here- 
tofore confined  them.  New  industries  are  also  being  founded 
through  individual  effort  and  industrial  work  in  the  schools ; 
for  example,  the  chinela  and  shoe  industries  of  Gapan,  Nueva 
Ecija,  and  Mariquina,  in  Rizal,  have  grown  from  the  success 
of  one  man  or  family.  The  Malalos  balangot  slipper,  now  sold 
all  over  the  Islands,  was  first  made  at  Malalos,  in  Bulacan,  in 
1907,  by  a  Japanese.  The  large  basket  industry  of  the  town 
of  Bulacan  had  its  beginning  in  1908,  in  the  teaching  of  bas- 
ketry in  the  schools.  Industrial  instruction  in  the  schools  has 
been  general  only  during  the  past  few  years ;  but  the  nucleus 
of  several  household  industries,  such  as  slipper  making,  bas- 
ketry, textile,  mat,  and  hat  w^eaving,  embroidery  and  lace 
making,  has  already  been  established  in  many  towns.  The 
aims  of  the  Bureau  of  Education  in  promoting  its  industrial 
program  have  been  most  practical.  The  attempt  has  been  to 
turn  the  pupils  directly  and  normally  from  the  public  schools 
into  an  industrial  life  which  will  enable  them  more  adequately 
to  meet  their  increasing  needs.  Contrary  to  the  prevailing 
theory  and  practice  of  certain  other  countries,  industrial 
instruction  in  the  Philippine  schools  is  highly  commercialized. 

Commercial  firms  are  beginning  to  invest  money  to  finance 
household  industries,  the  large  hat  production  of  Apalit,  Pam- 
panga,  and  neighboring  towns  being  due  to  their  backing. 
Moreover,  free  trade  with  the  United  States  has  opened  up  a 
large  market.  The  entire  production  of  baskets  can  be  placed 
there  for  years  to  come.    In  1918  the  United  States  imported 


MAISrUFACTURmG  371 

almost  the  entire  embroidery  output  of  the  Philippines,  and 
all  the  laces.  Most  of  the  hats  exported  from  the  Philippines, 
valued  at  more  than  Pi, 000,000,  now  go  to  the  United  States. 

There  is  still  opportunity  to  establish  large  household 
industries  in  the  Philippines,  and  their  recent  introduction 
and  growth  have  been  rapid.  Care  must  be  taken  that  the 
workers  receive  the  greatest  possible  return,  and  that  they 
are  not  exploited  by  the  middlemen.  If  household  industries 
are  carried  on  in  connection  with  agriculture,  either  by  the 
agriculturists  themselves  or  by  certain  members  of  the  family, 
industry  is  made  secondary  to  agriculture,  and  the  workers 
are  placed  in  an  independent  position.  The  greater  the 
intelligence  of  the  workers,  the  less  advantage  can  be  taken 
of  them;  therefore  the  schooling  of  the  masses  will  make 
them  free  agents  in  housework  as  well  as  in  agriculture. 
Much  division  of  labor,  whereby  the  worker  does  only  a 
small  part  of  the  work  on  a  given  article,  places  him  at 
a  disadvantage,  for  he  then  sells  his  labor  only.  If  he  makes 
a  finished  object,  he  can  sell  it  to  anybody.  The  government 
may  stand  ready  to  purchase  and  dispose  of  articles  from 
workers  who  are  being  exploited.  Workers  may  cooperate 
to  dispose  of  their  goods. 

It  is  always  possible  to  produce  an  inferior  article,  and  it 
is  often  possible  to  reduce  the  cost  of  production  at  the 
expense  of  the  laborer.  In  the  large  cities  of  the  United 
States  and  Europe  both  methods  are  employed  to  meet 
competition.  The  working  of  laborers  in  their  homes  and  in 
shops  (sweatshops)  for  the  purpose  of  getting  the  greatest 
amount  of  labor  from  them  at  the  least  cost  is  called  "  sweat- 
ing." The  lowering  of  quality  and  the  sweating  are  both 
ultimately  disastrous.  The  reputation  of  the  articles  suffers, 
and  the  efficiency  of  the  laborers  is  reduced.  Either  laborer 
or  merchant  may  ruin  an  industry  by  the  shortsighted  policy 
of  immediate  interest,  exploitation. 

The  value  of  household  industries  in  the  Philippines  rests 
on  their  correlation  with  agriculture :  the  utilization  of  spare 


372  ECONOMIC  CONDITIONS 

time  for  production,  the  returns  from  which  can  be  employed 
in  increasing  the  standard  of  hving,  educating  the  children, 
and  purchasing  land,  implements,  and  work  animals.^ 

Factory  Manufacture 

Under  the  commission  system  capital  controls  the  market- 
ing of  the  products  of  an  unorganized  army  of  laborers ;  the 
factory  system  divorces  the  workers  from  agriculture,  and 
organizes  them  into  a  compact  and  well-disciplined  body. 
The  em^bryo  of  the  factory  is  occasionally  encountered  in  the 
Philippines,  in  loom  weaving,  for  instance,  where  the  original 
outlay  for  machinery  is  an  expense  which  often  cannot  be 
afforded  by  the  laborer.  Sometimes  as  many  as  ten  looms 
are  found  in  one  house ;  they  are  worked  by  laborers  hired 
by  the  day.  In  such  a  case  the  owner  is  able  to  supervise 
all  the  processes  of  manufacture.  Sometimes  women  are  em- 
ployed to  knot  abaca  in  the  home.  Chinelas  are  often  made 
in  small  factories.  Dyeing  with  indigo  is  sometimes  done 
in  factories.  The  factory  system  with  hand  labor  is  impor- 
tant in  Europe,  China,  and  Japan,  but  the  Filipinos  prefer 
to  work  independently  if  they  can,  and  the  abundance  of  land 
in  the  Islands  usually  permits  them  to  do  so.  Attempts  to 
evolve  factories  from  highly  organized  household  industries, 
such  as  the  hat  industry  of  Lucban,  in  Tayabas,  have  been 
failures.  The  only  successful  factories  employing  handwork 
are  to  be  found  in  the  tobacco  industry ;  for  instance,  in  the 
cigar  factories  of  Manila,  where  hundreds  of  workmen  are 
grouped  in  one  establishment,  little  machinery  is  used.  In 
general,  therefore,  it  may  be  stated  that  manufacturing  and 
agriculture  are  still  closely  connected  in  the  Philippines. 

Machinery  is  usually  associated  with  factories,  since  it 
must  be  placed  at  the  source  of  power.  The  laborer  must 
be  brought  to  the   machinery.    He   now  works   at   regular 

1  In  Batangas  wages  from  the  knotted-abaca  industry  have  enabled 
many  tenants  to  purchase  land.    See  pp.  234,  235,  254,  257,  258,  261. 


Japanese  weaving  by  Hand 


Power  Looms 
FACTORY  WEAVING 


374  ECONOMIC  CONDITIONS 

hours,  and  makes  liis  home  in  the  narrow  confines  of  a  city ; 
thus  his  divorce  from  agriculture  is  complete.  Machinery 
and  the  factory  system  have  largely  displaced  household 
manufacture  because  (1)  certain  articles  can  be  made  by 
machinery  and  not  by  hand,  (2)  machinery  produces  in  large 
quantities,  (3)  it  is  cheaper  than  hand  labor,  and  (4)  greater 
division  of  labor  and  utilization  of  by-products  are  possible 
and  result  in  a  further  decrease  in  the  cost  of  production.  ^ 

1  The  members  of  a  Philippine  agricultural  family  are  usually  jacks-of-all- 
trades  :  farmers,  carpenters,  fishermen,  weavers,  and  the  like.  Nevertheless, 
division  of  labor  among  the  sexes  is  carried  out.  The  women  plant  the  rice, 
carry  on  the  household  industries,  and  prepare  and  cook  the  rice.  The 
planting  and  harrowing  of  the  fields,  the  construction  of  houses,  and  fishing 
are  usually  left  to  the  men.  In  many  places  are  found  a  few  artisans,  such 
as  barbers,  carpenters,  and  blacksmiths,  who  devote  themselves  to  their 
special  work.  The  localization  of  industries  is  a  form  of  division  of  labor, 
and  is  largely  the  result  of  a  local  supply  of  raw  materials.  It  is  found 
among  the  mountain  peoples  (see  Chapter  I)  and  occurs  to  a  much  greater 
extent  among  the  Filipinos. 

Division  of  labor  may  be  summed  up  as  that  system  of  production  in 
which  one  man  or  a  set  of  men  makes  one  part  of  an  article  or  performs 
one  step  in  the  work.  In  some  household  manufactures  in  the  Philippines 
it  is  not  observed.  In  weaving  mats  and  cloth,  and  in  making  clay  jars, 
bamboo  chairs,  and  bolos,  the  workers  may  do  all  the  steps  required  to 
complete  one  article.  In  mat  weaving,  for  instance,  the  weaver  may  cut 
pandan  leaves  and  do  all  the  stripping,  bleaching,  weaving,  and  selling.  In 
bolo  making  the  blacksmith  may  buy  materials  from  the  Chinese  store  (no 
matter  how  many  kilometers  away  the  market  is),  go  out  to  the  forest  to 
burn  wood  for  charcoal,  form  and  finish  the  blade,  put  on  the  handle,  and 
on  the  market  day  sell  his  finished  article  in  the  town. 

Usually,  however,  a  certain  division  of  labor  occurs.  In  the  making  of 
copra  different  persons  or  sets  of  persons  often  do  the  picking,  transporting 
to  the  kiln,  husking,  splitting,  placing  on  the  kiln,  removing  the  meat,  and 
Sacking.  In  the  production  of  abaca  in  quantity  one  man  cuts  down  the 
stalks,  another  transports  them  to  the  stripping  sheds,  another  separates 
the  petioles,  another  strips  the  fiber,  and  still  another  puts  it  out  to  dry. 
The  weaver  of  sinamay  often  buys  the  knotted  abaca  from  another  person. 
In  the  cleaning  of  rice  division  of  labor  takes  place  where  one  set  of 
laborers  pounds  the  paddy,  another  winnows  it  to  remove  the  husk,  another 
pounds  the  rice  to  polish  it,  and  a  fourth  group  winnows  it  to  remove 
the  bran. 

Where  division  of  labor  can  be  carried  on,  the  cost  of  producing  an 
article  is  greatly  lessened  because  time  is  saved  and  fewer  tools  are  used. 
The  laborers  do  not  have  to  change  from  one  part  of  the  work  to  another, 
and  therefore  become  much  more  skillful  and  do  the  work  not  only  better 


MANUFACTURING  375 

There  are  few  factories  in  the  Philippines.  Distilleries  are 
about  the  only  ones  found  in  the  provinces.  Most  factories 
are  in  Manila  and  a  few  in  the  other  ports  of  entry.  The 
most  important  are  tobacco  factories,  rectifying  plants,  lumber 
mills,  ice  plants,  ropewalks,  cotton  mills,  shoe  factories,  and 
match  factories.    Oil  factories  are  a  recent  development. 

but  also  in  less  time.  In  the  Philippines  the  women  usually  do  the  trans- 
planting of  rice,  because  they  are  recognized  as  quicker  and  more  skillful 
than  men.  Cigarette  packers  become  so  expert  they  do  not  have  to  count 
the  number  of  cigarettes  that  they  grasp  ;  their  sense  of  touch  enables  them 
to  determine  the  number  in  the  hand.  The  joining  of  two  bamboo  hats  to 
make  a  double  hat  is  regarded  as  a  separate  part  of  hat  weaving  in  Baliuag- 
Pulilan,  in  Bulacan  Province.  The  making  of  buntal  hats  in  Lucban  is 
divided  into  three  steps  :  (1)  the  weaving  of  the  crown  and  brim,  (2)  the 
weaving  back  of  the  libers  along  the  edge,  and  (3)  washing  and  ironing 
the  hat  and  curling  the  brim.  Each  group  of  workers  is  skilled  in  its  par- 
ticular part  of  the  manufacture.  In  bolo  making  the  assistants  (apprentices) 
hammer  out  the  rough  bolo  which  the  master  workman  finishes. 

Tools  are  saved  by  division  of  labor,  since  they  do  not  have  to  be  dupli- 
cated. Instead  of  one  man's  needing  all  the  tools  for  the  production  of 
cleaned  rice,  for  instance,  each  laborer  needs  only  the  one  connected  with 
his  particular  part  of  the  work.  Another  advantage  of  the  division  of  labor 
is  that  it  provides  light  work  for  the  young,  the  aged,  and  the  weak,  and 
common  labor  for  the  unskilled.  For  instance,  among  the  Igorots  the  divi- 
sion of  labor  in  agriculture  is  so  arranged  that  the  children  and  the  aged  do 
the  light  work,  such  as  picking  up  the  camotes  which  have  been  overlooked 
in  previous  harvests,  and  guarding  the  fields.  In  making  single  hats  the 
skilled  weavers  begin  the  hats  and  weave  the  crown  and  the  brim ; 
the  children  and  the  unskilled  workers  finish  the  hats  by  weaving  back  the 
fibers  along  the  edge.  Children  often  knot  the  abaca  used  by  their  mothers 
in  weaving.  The  modern  centrals  will  allow  the  planter  to  devote  his  entire 
attention  to  raising  sugar  cane  and  leave  to  experts  the  manufacture  of 
the  sugar. 

In  factory  work  where  machinery  is  employed,  the  tendency  is  to  give 
each  process  to  a  different  laborer.  Hence,  in  the  making,  some  articles, 
such  as  shoes,  may  pass  through  the  hands  of  a  score  or  more  of  men. 

To  have  division  of  labor,  extensive  production  is  necessary.  For  instance, 
it  would  not  pay  to  have  a  division  of  labor  in  the  cleaning  of  one  cavan  of 
rice,  or  in  the  production  of  copra  from  a  few  scores  of  coconuts,  or  in  the 
making  of  five  shoes.  It  is  necessary  to  have  hundreds  of  cavans  of  palay 
and  thousands  of  nuts  or  shoes. 

A  by-product  is  a  secondary  product  obtained  in  the  process  of  manu- 
facture. Thus  molasses,  bagasse,  and  the  leaves  are  by-products  of  sugar  ; 
husk,  bran,  binlid,  and  straw  are  by-products  of  cleaned  rice.  The  principal 
product  of  the  coconut  is  the  oil  obtained  from  the  copra.  The  by-products 
3,re  the  oil  cake,  which  is  used  for  feeding  animals  ;  the  husk,  which  is  used 


376  ECONOMIC  CONDITIONS 


Household  versus  Factory  Production 

The  persistence  of  household  industries  in  the  face  of 
competition  with  factory  products  may  be  accounted  for: 

1.  Inertia  often  causes  a  household  industry  to  persist 
even  at  prices  which  do  not  give  a  living  wage.  Many  old 
cotton  industries,  such  as  that  of  Taal,  in  Batangas,  in  which 
cloths  resembling  machine-made  textiles  are  woven,  are  in 
this  condition.  These  are  gradually  growing  less  numerous, 
however.  Modern  shoe  factories  recently  established  in 
Manila  have  somewhat  injured  the  home  shoe  industry  at 
Mariquina,  in  Rizal.  The  leather  employed  in  these  factories 
is  much  superior  to  that  used  in  Mariquina ;  hence  the  prod- 
uct of  the  former  is  preferable  to  that  of  the  latter,  even  at 
a  higher  price.  A  large  number  of  the  skilled  shoemakers 
of  Mariquina  are  now  working  in  the  factories  of  Manila; 
they  are  making  more  money  than  they  were  formerly 
earning   in   their  homes. 

2.  Where  machine-made  articles  must  yield  a  profit  to 
several  middlemen,  they  are  often  sold  in  a  given  region  at 
higher  prices  than  like  articles  produced  there  by  hand. 

3.  Certain  articles  cannot  be  made  by  machinery,  such  as 
straw  braids  for  hats,  knotted  Manila  hemp,  plaited  hats, 
and  most  varieties  of  baskets. 

4.  The  demand  for  certain  articles,  such  as  the  "  gee " 
strings  of  the  mountain  peoples,  is  not  great  enough  to 
warrant  special  machinery  for  their  manufacture. 

for  fuel  ;  the  useful  coir  fiber,  which  is  obtained  from  the  husk ;  the  shell, 
which  is  made  into  household  utensils  for  domestic  use,  and  which  can  be 
beautifully  polished  and  carved  ;  and  the  milk,  which  can  be  made  into 
vinegar.  A  difference  should  be  noted  between  a  derived  product  and  a  by- 
product. Candles,  for  example,  are  not  a  by-product  of  the  coconut,  but  a 
product  derived  from  the  main  product,  coconut  oil.  Sinamay  and  rope  are 
not  by-products  of  abaca  fiber  ;  they  are  articles  made  from  it.  The  waste 
from  the  production  of  abaca  fiber,  useful  in  making  paper,  is  a  by-product, 
since  it  is  obtained  as  an  additional  product  when  abaca  is  stripped.  In 
many  manufacturing  industries  the  profits  are  derived  entirely  from  the 
by-products. 


MANUFACTtTEING  377 

5.  Household  workmen  can  often  understand  and  satisfy 
the  demands  of  style  better  than  the  factory.  Tins  is  seen 
in  the  Ilocano  cloth  industry. 

6.  A  prejudice  often  exists  in  favor  of  handwork,  because 
such  products  are  supposed  to  be  better  made.  This  is  often 
mere  sentiment;  still,  in  certain  articles  finer  and  more 
perfect  work  can  be  done  by  hand  than  by  machinery.  This 
applies  particularly  to  embroideries  and  laces. 

7.  In  housework  the  workman  labors  for  himseK.  Hence 
his  interest  in  it  causes  his  highest  technical  skill  and  his 
whole  artistic  sense  to  be  embodied  in  the  finished  article. 
This  interest  persists  in  wage,  handicraft,  and  commission 
work ;  for  this  reason  handmade  articles  possess  individuality 
and  artistic  qualities  not  obtainable  in  machine  products. 

Household  manufacture  the  world  over  is  not  waning.  On 
the  contrary,  it  is  being  revived,  but  is  restricted  to  the 
spheres  in  which  it  has  peculiar  advantages.  Its  greatest 
importance  is  supplementary  to  agriculture. 

Location  of  Manufacture 

1.  Raw  material.  The  supply  of  raw  materials  is  an  impor- 
tant factor  in  determining  the  location  of  manufacture.  Thus 
rice  mills  are  situated  in  rice-growing  regions,  sawmills  in 
the  forest,  and  factories  near  good  harbors  or  railroad  centers, 
where  raw  materials  can  be  transported  cheaply.  The  Philip- 
pine nipa  shingle  industry  and  the  distillation  of  alcohol  from 
nipa  tuba  are  centered  in  the  river  deltas  on  which  large 
nipa  swamps  grow.  The  household  manufacture  of  sinamay  is 
largely  confined  to  the  abaca  regions.  The  production  of  hats 
and  mats  from  buri-palm  straws  (buntal,  Calasiao,  and  buri) 
is  established  near  the  large  buri  areas  in  Luzon.  The  chinela 
and  leather  industries  of  Gapan,  Nueva  Ecija,  are  dependent 
on  each  other. 

2.  Cheap  and  efficient  power.  Often  raw  materials  are  trans- 
ported many  miles  to  the  supply  of  coal  or  to  water  power,  since 
it  has  been  found  cheaper  to  take  the  raw  materials  to  the 


878  ECOIslOMIC  CONDITIONS 

power  than  to  take  the  power  to  the  raw  materials.  Thus  iron 
ore  is  carried  from  Spain  to  England,  and  from  the  mines 
about  the  Great  Lakes  to  the  coal  of  Pittsburgh  to  be  smelted. 
Raw  cotton  is  sent  from  southern  United  States  to  the  water 
power  of  New  England,  and  to  the  coal  of  Great  Britain.  Sev- 
eral factories  are  built  in  Manila  in  preference  to  other  places 
because  coal  can  be  imported  into  Manila  at  a  lower  cost. 

3.  Skilled  and  cheaj?  labor.  The  amount  of  skilled  and 
cheap  labor  procurable  in  a  given  place  largely  determines  the 
extent  of  its  manufacturing.  In  the  Philippines  raw  mate- 
rials are  often  sent  from  towns  where  labor  is  hard  to  get  to 
towns  where  there  is  an  adequate  supply.  This  is  particu- 
larly true  of  such  household  industries  as  hat  weaving.  The 
buntal  straw  from  which  hats  are  made  in  Lucban,  in  Taya- 
bas,  is  imported  from  the  buri  area,  where  no  hats  are  made 
because  there  are  no  weavers.  The  hats  made  in  other  towns 
are  usually  finished  in  Lucban,  since  skilled  laborers  are 
available.  In  the  same  way  buri  midribs  are  imported  into 
Calasiao,  in  Pangasinan,  from  other  towns  where  the  raw 
materials  exist,  but  where  a  labor  supply  is  not  available. 

By  cheap  labor  is  not  meant  labor  which  receives  low  wages, 
but  labor  which  produces  much  in  proportion  to  the  wages 
given.  Often  labor  which  receives  low  wages  is  not  cheap  in 
the  end,  for  it  produces  little  wealth.  Thus  cotton  cloths 
produced  in  India  by  poorly  paid  labor  cannot  compete  with 
those  of  England  produced  by  labor  which  receives  much 
higher  wages.  An  English  laborer  produces  more  in  propor- 
tion to  his  wages  than  an  Indian  laborer,  and  English  labor  is 
therefore  cheaper.  Labor  must  be  skilled  where  machinery  is 
used,  and  the  supply  should  everywhere  be  large  and  constant. 
If  there  are  many  laborers  one  day  and  few  the  next,  no  en- 
terprise, either  manufacturing  or  agricultural,  can  be  carried  on. 
As  labor  is  the  most  important  of  the  factors  which  determine 
the  cost  of  an  article,  so  it  is  one  of  the  most  important  which 
determine  the  location  of  industry. 


MANUFACTURING  379 

In  the  past  the  Filipinos  have  done  little  work  with  tools  or 
machiaery.  The  artisans  of  the  Philippines  have  been  Chinese 
carpenters,  cabinetmakers,  and  masons.  The  Filipinos  have 
been  mostly  employed  as  tailors,  silversmiths,  goldsmiths, 
painters,  and  blacksmiths,  and  in  structural  work  which 
necessitates  climbing  to  a  considerable  height.  They  are  now 
taking  up  other  trades  to  an  ever-increasing  extent.  In  prov- 
inces where  skilled  workmen  formerly  had  to  be  imported,  a 
sufficient  supply  of  local  labor  for  normal  building  operations 
is  now  available.  The  implements  and  methods  are  primitive, 
adopted  from  the  Chinese. 

The  Filipinos  have  proved  themselves  especially  efficient  as 
sawmill  hands,  cigar  makers,  and  tenders  of  cigarette  machines. 
They  are  also  proving  satisfactory  in  machine  shops,  ship- 
building and  repair  shops,  railroad  work,  and  the  relatively 
numerous  factories  now  established  in  Manila.  Capitalists 
are  investing  money  in  factories  dependent  on  Filipino  labor ; 
this  is  an  encouraging  sign. 

The  problem  of  training  a  sufficient  body  of  men  to  use 
tools  and  take  charge  of  machinery  is  difficult,  since  the  Fili- 
pinos have  been  agriculturists.  Their  proficiency  in  handwork, 
however,  has  made  it  easier  to  build  up  a  class  of  Filipino 
artisans,  such  as  is  now  being  formed  in  factories  and  Insular 
and  Federal  shops.  The  schools  are  turning  out  trained  arti- 
sans, and  are  teaching  woodworking  and  other  arts  and  trades 
in  their  general  course.  They  have  assisted  greatly  in  the 
change  of  feeling  toward  trade  and  factory  work,  so  that 
these  are  coming  to  be  recognized  as  honorable  and  dignified 
methods  of  earning  a  living.  In  modern  industrial  nations  it 
is  felt  that  conditions  of  apprenticeship  in  the  workshop  or 
factory  are  not  such  as  to  give  all  the  training  necessary 
to  those  who  are  to  engage  in  trade  and  industry.  They  are 
one-sided  and  imperfect.  Technical  schooling  is  becoming 
more  necessary  for  the  training  of  workers.  Sometimes  this 
is  given  in  the  factories ;  more  often  it  is  left  to  schools.   The 


380  ECONOMIC  CONDITIONS 

present  demand  for  skilled  labor  in  the  Philippines  tends  to 
enhance  the  importance  of  technical  education  here.^ 

The  idea  of  trade  and  labor  unions  showed  itself  in  the 
Philippines  early  in  the  present  century.  Unions  are  combina- 
tions of  labor  which  try  to  meet  the  concentration  of  power  in 
the  hands  of  employers  (an  outgrowth  of  the  factory  system) 
by  a  similar  concentration  on  the  part  of  the  employed.  Unions 
do  not  exist  for  the  purpose  of  striking.  The  strike  is  one  of 
the  means  by  which  they  try  to  obtain  their  ends.  The  modern 
unions  of  the  better  sort  have  for  their  objects  the  protection 
of  the  worker  against  encroachment  by  employers ;  the  uplift 
of  their  members ;  the  raising  of  their  standard  of  living ;  an 
increased  wage ;  and  mutual  insurance  for  sickness,  accident, 
or  death.  In  their  relations  with  employers  unions  resort  to 
discussion,  contract,  arbitration,  and  sometimes  to  the  strike. 

The  labor  unions  established  in  Manila  in  1901  and  1902 
under  the  auspices  of  a  general  labor  union  or  federation  were 
formed  by  a  group  of  men,  not  laborers  themselves,  for  per- 
sonal and  political  ends.  They  had  none  of  the  objects  noted 
above,  and  illustrate  the  mischief  that  false  leaders  may  accom- 
plish with  a  body  of  somewhat  ignorant  workers.  The  feder- 
ation was  disbanded  by  the  government  a  few  months  after  its 
establishment,  because  of  its  seditious  tendencies. 

A  new  organization,  similar  to  the  first,  has  managed  to 
keep  alive,  but  its  activities  have  not  been  effective ;  its  or- 
ganization is  too  complex,  and  it  has  tried  to  do  too  much 
at  once.  Meanwhile  trade  unions,  namely,  unions  of  those  who 
belong  to  the  same  trade,  have  flourished  under  autonomous 
management,  and  have  proved  to  be  more  useful  than  the 
federation,  because  they  have  been  more  easily  managed  and 
have  been  able  to  frame  different  policies  to  suit  the  various 

1  The  typographical  trades  in  the  Philippines  offer  an  excellent  example 
of  the  success  of  the  Filipinos  as  skilled  workers.  In  the  Bureau  of  Printing:, 
of  the  466  employees  more  than  ninety-three  per  cent  were  Filipinos.  Their 
work  has  received  the  highest  praise  from  authorities  (Annual  Report  of  the 
Director  of  Printing,  1912).   In  1918  practically  all  were  Filipinos. 


MANUFACTURING  381 

needs  of  the  separate  groups  of  workers.    To-day  they  are  the 
organizations  that  uphold  the  interests  of  the  laboring  class. 

The  ''  Union  de  Tabaqueros  de  Filipinas  "  is  the  largest  and 
strongest  union.  The  machinists'  and  seamen's  unions  are 
strong  organizations.  There  are  also  smaller  trade  unions. 
Successful  and  unsuccessful  strikes  have  been  carried  on,  but 
the  tendency  to  strike  is  becoming  less  strong.  To-day  trade 
unionism  rather  than  general  labor  unionism  is  the  tendency.^ 

In  1918  the  total  number  of  labor  societies  in  Manila  was 
143,  and  the  membership  more  than  147,000.  No  data  are 
available  with  respect  to  labor  organizations  in  the  provinces. 
In  this  same  year  84  strikes,  63  of  which  were  in  Manila  and 
the  rest  in  ten  provinces,  involved  16,000  workers,  11,000. 
being  in  Manila.  Of  these  84  strikes,  50  resulted  from  peti- 
tions for  increased  wages,  15  from  personal  causes,  such  as 
sympathy  for  fellow  laborers  or  feeling  against  foremen,  and 
8  from  requests  for  the  general  improvement  of  conditions. 
Of  these  strikes  62  resulted  favorably  for  the  laborers.  It 
must  be  remembered  that  prices  and  the  cost  of  living  were 
increasing  in  1918. 

In  this  year  there  was  also  organized  in  Manila  the  first 
committee  on  arbitration,  the  Committee  on  Conciliation  and 
Arbitration  of  the  Union  de  Tabaqueros  de  P'ilipinas  and  of 
the  Manila  Tobacco  Association.  With  respect  to  arbitration 
the  terms  read  as  follows : 

7th.  That  the  "  Manila  Tobacco  Association  "  and  the  "  Union  de 
Tabaqueros  de  Filipinas  "  shall  appoint  three  representatives  for  each 
of  the  said  bodies,  which  representatives  shall  constitute  a  "  Committee 
on  Conciliation  and  Arbitration,"  to  which  committee  shall  be  submitted 
all  questions  and  matters  which  might  arise  hereafter  between  employ- 
ers and  laborers,  both  parties  being  prohibited  from  taking  radical 
measures  without  first  submitting  their  controversies  and  conflicts  to 
the  said  Committee.     The  decisions  of  this  Committee,  in  order  that 

^  I  am  indebted  to  Mr.  Conrado  Benitez  for  data  on  unions  in  the  Philip- 
pines. Bulletin  No.  58,  Bureau  of  Labor,  Washington,  D.  C,  may  be  con- 
sulted for  details  of  the  early  history  of  the  movement. 


382  ECOKOMIC  CONDITIONS 

they  may  be  valid,  shall  be  approved  by  at  least  two  members  of  each 
party.  This  Committee  can  also,  after  a  previous  agreement,  appoint  an 
arbiter,  whose  decisions  shall  be  compulsory  to  both  parties. 

8th.  The  Committee  on  Conciliation  and  Arbitration  mentioned  in 
the  preceding  paragraph  shall  be  vested  with  power  to  issue  rules  and 
regulations  tending  to  the  obtaining  of  its  aim,  which  is  the  cordial 
harmony  between  Capital  and  Labor,  or  between  employers  and  their 
laborers  and  employees. 

Another  innovation  which  also  occurred  respecting  the  re- 
lation of  laborer  and  employer  is  the  collective  contract  of 
labor  agreed  upon  between  the  printing  establishments  of 
Manila  and  the  "  Union  de  Impresores  de  Filipinas." 

The  principal  terms  contained  in  this  contract  are  as 
follows : 

1.  No  signing  printing  establishment  shall  admit  into  its  shops  any 
laborers  not  affiliated  with  the  "  Union  de  Impresores  de  Filipinas." 

2.  The  daily  work  shall  be  eight  hours. 

3.  All  work  done  outside  the  hours  designated  shall  be  considered 
extraordinary,  and  laborers  shall  be  paid  50  per  cent  more  of  the  wages 
agreed  upon. 

4.  The  fixing  of  a  minimum  scale  or  rate  of  wages  which  should  be 
at  least  P2  for  any  classified  laborer  in  printing  establishments. 

5.  The  regulation  of  apprenticeship.  In  order  that  anyone  may  be 
considered  an  apprentice,  it  is  required  that  the  applicant  be  at  least 
14  years  of  age  and  that  his  knowledge  of  reading  and  writing  be  at 
least  of  primary  grade. 

6.  The  organization  of  a  committee  on  Conciliation  and  Arbitration, 
which  shall  be  composed  of  not  more  than  three  representatives  from 
each  party;  the  decision  of  the  said  committee  being  compulsory  to 
both  parties.  Upon  request  of  any  representative  from  any  party  an 
Arbiter  can  be  nominated.  This  nomination  shall  have  the  consent 
of  all  the  members  composing  the  committee,  and  the  decision  of  the 
Arbiter  so  designated  shall  be  compulsory  to  both  parties,  with  no 
further  investigation. 

4.  Low  cost  of  transportation.  Manufacturing  cities  must 
be  near  their  markets,  or  connected  with  them  by  some  means 
of  cheap  transportation,  so  that  their  products  may  compete 
in  price  with  the  same  articles  manufactured  in  other  places. 


MANUFACTURma  883 

Cheap  methods  of  interisland  transportation  have  made  Manila 
and  other  ports  of  entry  successful  manufacturing  centers. 
Better  communication  with  Europe  and  America  will  do  much 
for  Manila  as  a  factory  city. 

5.  Capital.^  Increase  in  manufacture,  and  the  accumulation 
of  capital,  are  coincident.  In  the  transition  from  housework 
to  commission  work  we  see  the  worker  gradually  emanci- 
pated from  the  soil,  and  the  growth  of  capital.  The  looms, 
yarn,  tools,  and  implements  of  household  weavers  are  capital ; 

1  Capital  is  that  part  of  wealth  which  is  used  for  the  production  of  more 
wealth.  Wealth  therefore  is  or  is  not  capital  according  to  its  use.  Thus  the 
fodder  given  to  a  carabao  is  capital  because  the  animal  helps  to  produce 
wealth,  but  fodder  given  to  a  race  horse  is  not  capital  because  no  wealth  is 
produced  by  the  race  horse.  A  building  used  as  a  factory  is  capital,  but  a 
building  used  for  a  clubhouse  is  not  capital.  Food  is  the  most  simple  form 
of  capital.  At  the  end  of  the  harvest  the  farmer  has  enough  food  to  last  him 
for  a  number  of  months.  That  is  his  wealth.  He  may  or  may  not  use  it  as 
capital ;  if  he  is  idle,  it  is  not  capital ;  if  he  produces,  it  is  capital. 

The  growth  of  capital  is  well  illustrated  in  the  economic  stages  exempli- 
fied by  the  Negritos,  Subanuns,  and  mountain  peoples.  The  amount  of 
wealth  in  the  form  of  implements,  tools,  and  food  employed  to  produce 
further  wealth  increases  with  each  culture  stage. 

The  growth  of  capital  is  the  result  of  saving  by  the  individual,  as  is  often 
illustrated  in  the  increase  of  animals.  Batangas  Province  furnishes  instances 
of  families  who  raise  a  few  chickens,  sell  them  for  a  small  sow,  and  raise  the 
sow  and  a  litter  of  pigs,  which  they  trade  for  a  calf.  Thus  a  work  animal 
is  obtained.  The  matter  of  saving  has  already  been  discussed  in  connection 
with  land  tenure,  and  the  incentive  toward  ownership  of  a  farm  which  the 
possession  of  a  work  animal  gives  the  tenant  has  been  explained.  Saving  is 
the  great  law  of  capital. 

The  forms  which  capital  takes  can  be  grouped  as  follows : 

1.  Productive  improvements  on  land. 

2.  Buildings,  such  as  barns  and  factories,  devoted  to  productive  industries. 

3.  Means  of  transportation,  such  as  roads,  canals,  railroads. 

4.  Raw  materials. 

5.  Auxiliary  materials,  such  as  coal  and  lubricating  oils. 

6.  Tools  and  machines. 

7.  Domestic  animals. 

8.  Money,  weights,  and  measures. 

9.  Stocks  of  goods  in  stores  and  warehouses. 
10.  Books,  instruments,  and  the  like. 

Like  the  word  "wealth"  the  word  "capital"  has  other  meanings  than 
the  economic.  From  the  point  of  view  of  the  individual,  capital  consists  of 
all  his  possessions  which  bring  him  wealth.   Thus  a  note  or  a  mortgage  is 


384  ECONOMIC  CONDITIONS 

so  are  the  advances  of  food  and  material  made  by  brokers.  In 
the  factory  system  complete  emancipation  is  effected,  and  the 
laborer  becomes  dependent  on  the  capital  of  others.  The  avail- 
ability of  such  capital  therefore  helps  to  determine  the  location 
of  factories. 

The  capital  possessed  by  the  Filipinos  is  not  large ;  it  is 
tied  up  in  agriculture.  Most  of  the  capital  invested  in  Phil- 
ippine manufactures  is  foreign,  and  any  great  increase  in 
manufacturing  must  result  from  foreign  capital,  for  even  with 
great  saving  the  Filipinos  cannot  soon  accumulate  enough 
surplus  wealth  to  finance-  large  enterprises.  There  is  no  doubt 
that  the  Filipinos  can  save.  Sucli  primitive  Malays  as  the 
Bontoks  often  have  in  their  granaries  the  rice  crop  of  five  years 
before.  The  Ilocanos  are  probably  the  most  saving  of  the 
Filipinos.  In  Hawaii,  it  is  noted,  the  Filipinos  usually  spend 
all  that  they  first  earn,  and  then  settle  down  to  regular  work. 
When  they  find  they  can  earn  more  than  enough  to  live 
comfortably,  they  begin  to  save. 

With  the  establishment  of  peace  and  security  the  prosperity 
of  the  Philippines  and  the  domestic  capital  of  the  country  have 
increased.  The  Postal  Savings  Bank  was  established  by  the 
government  to  encourage  small  savings  by  providing  a  place 
of  safe  deposit.  In  1918  there  were  more  than  78,000  deposi- 
tors; the  deposits  were  F4,928,152. 

The  savings  deposited  in  commercial  banks  indicate  the 
growth  of  wealth  in  the  Islands.  In  1907  they  amounted  to 
about  F560,000;  in  1912,  to  almost  Pl,000,000 ;  and  in 
1918  to  more  than  Pl,600,000.  The  total  resources  of  the 
Philippine  commercial  banks  are  even  a  better  index  of  the 
accumulation  of  capital  in  the  Islands : 

capital  to  the  holder.  But  from  the  point  of  view  of  political  economy  (that 
is,  from  the  point  of  view  of  the  country  as  a  whole),  notes,  mortgages,  and 
such  commercial  paper  are  not  capital.  Thus  a  mortgage  on  a  factory  is  not 
capital  to  a  country.  The  factory  is  the  capital,  and  the  mortgage  merely 
shows  that  somebody  owns  a  part  of  it.  Economic  capital  consists  only  of  that 
wealth  which  produces  more  wealth.  Interest  is  payment  for  use  of  capital, 
just  as  wages  are  payment  for  labor. 


MANUFACTURING  386 

Year  Total  Resources 

1907 P  34,000,000 

1910 46,000,000 

1913 67,000,000 

1915 71,000,000 

1916 122,000,000 

1917 239,000,000 

1918 400,000,000 

In  1918  the  Bureau  of  Commerce  and  Industry  estimated 
that  the  grand  total  of  capital  in  operation  by  domestic  and 
foreign  concerns  exceeded  P500,000,000,  of  which  PlOO,- 
000,000  represented  American  and  foreign  capital.  The  future 
will  probably  see  an  increase  in  the  American  and  foreign 
capital  invested  here.  The  larger  part  of  the  domestic  capi- 
tal of  the  Philippines  has  been  of  recent  growth.  Corporate 
activity  became  noticeable  in  the  Islands  in  1906.  Since  then 
more  than  three  thousand  corporations  and  partnerships  have 
been  registered.  The  purpose  for  which  they  were  organized 
indicates  the  relative  importance  of  capitalistic  enterprises  in 
the  Islands.  The  table  on  page  386  shows  the  need  of  capital 
to  develop  natural  resources  and  manufacturing. 

Thk  Philippinks  as  a  Manufacturing  Country 
Unfavorable  Conditions  Favorable  Conditions 

Lack  of  highly  developed  inter-  High    cost    of    transportation 

island     and    land    transportation  favors  working  up  raw  materials 

facilities.  into  semimanufactured  form  ;    for 

Distance  from  the  markets  of  example,  coconut  oil,  centrifugal 

America    and    Europe,    and    poor  sugar, 
transportation    facilities   to   those 
markets.  Agricultural      system      favors 

Amount  of  labor  is  limited  and  household    industries.     Labor    is 

is  demanded  in  agriculture  ;  labor  skilled  in  handwork;   for  example, 

lacks  skill  in  handling  machinery.  embroidery,  cigar  making. 

Lack  of  power. 

Lack  of  capital.    What  capital  Abundant      agricultural      raw 

is  available    is    required    for    the  materials.     Metals  are    available, 

development  of  agriculture.  but  not  developed. 


386 


ECONOMIC  CONDITIONS 


Domestic  Corporations  incorporated  from  March  30,  1906, 
TO  June  30,  1918 


Class 


I.   Natural  resources 

1.  Mining 

2.  Agriculture 

3.  Lumbering 

4.  Fishing 

5.  Others 

II.    Commerce 

1.  Wholesale  and  retail      .    .    . 

2.  Transportation 

3.  Banking  and  insurance      .    . 

4.  Import  and  export     ,    .    .    . 

5.  Drug  store 

6.  Warehouse 

7.  Commission  and  brokerage    . 

8.  Others 

III.  Industry 

1.  Construction  and  repair    .    . 

2.  Distilleries  and  breweries .    . 

3.  Electric  light  and  power    ,    . 

4.  Vegetable  oil 

5.  Cigars  and  cigarettes     .    .    . 

6.  Printing  and  publishing     .    . 

7.  Shoes  and  other  leather  goods 

8.  Ice  and  cold  storage  .... 

9.  Rice  mills 

10.  Others 

IV.  Miscellaneous 

1.  Recreation 

2.  Hotels  and  restaurants  .    .    . 

3.  Educational  and  religious .    . 

4.  Clubs  and  societies     .... 
6.  Others 

Total 


Num- 
ber 


379 

109 

228 

31 

10 

1 

324 

143 

85 

13 

31 

10 

9 

10 

23 

205 

28 

22 

14 

17 

10 

32 

3 

10 

8 

61 

478 

49 

10 

259 

134 

26 


1,386 


Capital  Sub- 
scribed 


P35,449,008.00 

21,714,279.00 

11,178,279.00 

2,199,330.00 

277,120.00 

80,000.00 

37,156,032.00 

10,798,880.00 

9,744,496.00 

9,400,000.00 

5,380,475.00 

596,400.00 

413,650.00 

169,100.09 

653,031.00 

20,055,032.05 

4,368,255.00 

1,173,250.00 

2,625,290.00 

1,578,300.00 

808,832.75 

479,661.00 

451,606.00 

379,010.00 

254,767.00 

7,936,060.00 

2,938,032.44 

775,214.00 

527,045.00 

232,965.00 

8,980.44 

1,398,828.00 

P  95,603, 104.00 


Capital  Stock 


P  67,969,046.00 

39,019,900.00 

21,290,146.00 

6,959,000.00 

620,000.00 

80,000.00 

72,443,050.00 

26,655,530.00 

19,272,020.00 

11,250,000.00 

9,125,000.00 

2,330,000.00 

1,690,000.00 

406,000.00 

1,714,500.00 

49,502,577.30 

6,687,500.00 

8,257,500.00 

6,687,500.00 

5,104,500.00 

1,992,000.00 

1,352,210.00 

902,000.00 

611,000.00 

375,867.00 

13,542,000.00 

17,246,494.44 

2,083,200.00 

1,262,600.00 

487,000.00 

38,194.44 

13,375,500.00 


F207,161,167.74 


Note.   Twelve  corporations  reported  to  have  been  dissolved  are  not 
included. 


MANUFACTURING  387 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 

Suggestions  based  on  the  Text 

I.  Are  the  Philippines  a  densely  populated  country  ?  2.  Prove 
your  answer  with  comparative  figures.  3.  How  many  fold  may 
the  Philippine  population  be  increased  before  the  country  will 
become  as  densely  populated  as  an  agricultural  country  ? 

4.  Improvement  in  agriculture  in  relation  to  diminishing  returns 
from  land. 

5.  Explain  why  dense  populations  develop  manufacturing. 
6.  Explain  why  manufacturing  regions  are  densely  populated. 

7.  Density  of  the  population  of  the  Philippines  in  relation 
to  (a)  seasonal  labor,  (h)  the  settlement  of  regions  newly  opened 
to  agriculture,  (c)  manufacturing  and  commerce. 

8.  Illustrate  the  stages  in  manufacture  by  examples  from  the 
Philippines.  9.  Why  will  household  production  of  manufactured 
articles  continue  in  the  Philippines  ? 

10.  Figures  which  show  the  growth  of  capital  in  the  Philippines. 

II.  Name  five  companies  in  the  Philippines  whose  stocks  are 
now  available  for  investors.  12.  Which  do  you  think  a  good 
investment?  13.  Why? 

14.  Japan  imports  abaca  fiber  worth  P  4,000,000,  and  reexports 
it  as  braid  worth  P  14,000,000.  Explain  how  this  is  a  loss  to  the 
Philippines.  15.  Name  three  partly  manufactured  products  that 
the  Philippines  have  begun  to  export  in  the  past  few  years. 
16.  Why  is  this  more  beneficial  to  the  Philippines  than  the 
export  of  the  raw  products  ?  17.  Name  some  other  raw  products 
that  might  be  exported  in  semimanufactured  form. 

18.  Are  conditions  favorable  or  unfavorable  for  manufacture 
in  the  Philippines  ? 

19.  In  1918  the  oil  mills  in  Manila  were  forced  to  stop  for  a 
considerable  part  of  each  working  day  because  they  were  not 
able  to  secure  electric  power.  Using  this  as  an  example,  explain 
the  necessity  for  abundant  power  in  manufacture. 

20.  If  electric  power  is  developed  in  the  Philippines  as  it 
has  been  in  Italy,  what  effect  might  its  introduction  into  house- 
holds have  on  the  development  of  household  industries  in  the 
Philippines  ? 


388  ECONOMIC  CONDITIONS    • 

21.  In  1918  about  8000  emigrants  were  sent  to  sparsely 
populated  regions  of  the  Philippines ;  these  emigrants  went 
from  Cebu  and  Iloilo  for  the  most  part.  In  the  same  year 
about  2700  emigrants  went  to  Hawaii,  of  which  more  than 
1000  emigrated  from  Cebu,  850  from  Ilocos  Norte,  and  300 
from  Oriental  Negros.  Comment  on  these  emigrations  as  to 
(a)  the  effect  of  density  of  population,  (b)  the  advantage  or 
disadvantage,  economically,  of  these   migrations   of  laborers. 


Suggestions  for  the  Study  of  Local  Conditions 

1.  Density    of    population.     2.    Emigration    or    immigration. 
3.  Household  industries.    4.  Factories.  ^.  Industrial  centers. 


Suggestions  for  Reports  from  References,  especially 
FROM  Commercial  Geographies 

1.  The  concentration  of  industries  in  the  United  States  and 
parallels  in  the  Philippines.  (Brigham,  pages  92-110,  202-228 ; 
Bishop  and  Keller,  201-209.) 

2.  The  United  States,  the  United  Kingdom,  Germany,  France, 
Belgium,  Japan  as  manufacturing  countries.  (Brigham ;  Bishop 
and  Keller.) 

3.  The  production  of  cloth,  hats,  mats,  pottery,  and  embroidery 
in  the  Philippine  households.  4.  Encouragement  by  the  govern- 
ment. 5.  The  export  of  household  manufactures  from  the 
Philippines.    6.  The  United  States  as  a  favorable  market. 

7.  Philippine  factories.  8.  The  growth  of  the  Philippine  ex- 
port of  manufactured  and  partly  manufactured  products. 

9.  The  life-insurance  companies  in  the  Philippines  as  factors 
in  stimulating  the  growth  of  capital  through  saving. 

10.  From  the  latest  report  of  the  Collector  of  Internal  Revenue 
determine  the  income  tax  per  capita  in  each  province ;  the  tax 
per  capita  on  merchants  and  manufacturers.  11.  Plot  these 
figures  and  comment  on  them. 

12.  From  figures  in  the  annual  report  of  the  Treasurer  of  the 
Philippine  Islands  make  a  chart  showing  the  increase  in  the  com- 
mercial savings  accounts  since  1907.    13.  Make  a  similar  chart 


MANUFACTURIKG  389 

showing  the  total  resources  of  commercial  banks  since  1907. 
14.  Interpret  this  chart  in  terms  of  accumulated  capital  and  of 
what  you  have  learned  about  the  history  of  the  trade  in 
export  crops. 

15.  The  financing  of  industry  and  the  development  of 
corporations.    (Bishop   and   Keller.) 

16.  The  corporation  laws  of  the  Philippine  Islands.  You  have 
just  organized  a  corporation  which  has  entered  into  the  business 
of  manufacturing  cigars.  Explain  how  the  organization  was 
effected. 

17.  The  production  of  coal  and  iron,  and  how  manufacturing 
and  industry  in  general  depend  on  them  (illustrated  with  charts, 
tables,  and  maps).  (All  commercial  geographies.)  18.  The  importa- 
tion of  coal  into  the  Philippines.  19.  The  importation  of  iron 
and  steel,  and  their  manufactures. 

20.  The  commercial  history  of  petroleum.  21.  Its  manufacture 
and  uses.  (All  commercial  geographies.)  22.  Imports  of  petroleum 
and  its  products  into  the  Philippines. 

23.  The  production  and  use  of  gold,  silver,  copper,  and  plati- 
num. (All  commercial  geographies.)  24.  The  production  of  gold 
in  the  Philippines  (see  the  Treasurer's  Annual  Report). 

25.  The  production  and  use  of  the  principal  metallic  minerals. 
(Bishop  and  Keller  and  other  commercial  geographies.) 

26.  The  production  and  use  of  the  principal  nonmetallic 
.minerals.    (Bishop  and  Keller  and  other  commercial  geographies.) 

27.  Textile  manufacture.  (Bishop  and  Keller  and  other  com- 
mercial geographies.) 

28.  Chemicals  and  dyestuffs.  (Bishop  and  Keller  and  other 
commercial  geographies.) 

29.  Development  in  the  uses  of  electricity.  (Bishop  and  Keller 
and  other  commercial  geographies.) 

30.  The  making  and  use  of  cement.  31.  Its  particular  value 
for  construction  in  the  Philippines.  32.  Domestic  production  of 
cement. 

33.  The  world's  production  and  supply  of  salt.  34.  Its  produc- 
tion and  trade  in  the  Philippines. 

35.  Other  uses  of  minerals.    (All  commercial  geographies.) 

36.  Although  statistics  on  household  industries  in  the  Philip- 
pines will  not  be  available  until  the  publication  of  the  census  of 


390 


ECONOMIC  CONBITIOKS 


1918,  preliminary  figures  indicate  the  importance  of  these  indus- 
tries.   Statistics  from  eight  provinces  are  as  follows : 


Provinces 

Establishments 

Value  of  Raw 
Materials 

Value  of 
Production 

Batangas 

Cavite 

Laguna     

La  Union 

Leyte 

Pampanga 

Rizal 

Sorsogon 

12,097 
2,440 
1,651 
752 
5,302 
3,425 
2,166 
959 

P  1,132,204.14 

207,278.02 
233,783.15 
112,638.44 
487,470.07 
340,672.89 
360,383.38 
112,637.80 

P2,341,212.45 

585,027.02 

547,491.97 

1,883,905.82 

1,498,215.34 

1,028,994.45 

788,827.65 

293,093.53 

Total 

28,792 

P2,987,167.89 

P  8,868,868.23 

From  these  statistics  compare  the  production  of  household 
industries  per  capita  in  the  different  provinces. 

37.  Compare  the  value  of  the  product  of  the  household  indus- 
tries with  the  values  of  various  crops,  as  shown  in  the  statistical 
reports  of  the  Bureau  of  Agriculture. 

38.  If  a  copy  of  the  census  of  the  Philippine  Islands  for  1918 
is  available,  make  charts  indicating  the  provinces  in  which  house- 
hold industries  are  of  greatest  importance. 

39.  Make  a  small  map  showing  the  distribution  of  household 
industries  in  the  Philippines,  using  data  on  household  industries 
by  municipalities  from  the  census  of  1918,  and  letting  each  dot 
represent  100  workers  or  10,000  pesos'  worth  of  product. 


Manufacturing  in  the  Philippines  (From  the 
Census  of  1918) 

1.  From  the  data  on  population  by  provinces  and  municipalities 
in  the  census  of  1918  make  a  small  map  showing  the  distribution 
of  population  in  the  Philippines.  Let  each  dot  represent  10,000 
inhabitants.  Compare  this  map  with  Chart  XXXIV.  2.  Make 
a  chart  of  the  provinces  in  the  order  of  density  of  population. 
3.  Which  provinces  have  areas  of  very  dense  and  which  of  very 
sparse  population  ? 


MANUFACTURING  391 

Selections  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  ChapI^er 

1.  The  law  of  diminishing  returns.  (Bullock,  pages  74-75.) 

2.  Review  the  references  for  the  organization  of  labor.  (Bullock, 
pages  304-316.) 

3.  The  factors  of  production.  (Bullock,  pages  32-54.) 

4.  The  organization  of  the  factors  of  production.  (Bullock, 
pages  55-60.) 

5.  Business  corporations.  (Bullock,  pages  60-73.) 

6.  The  law  of  economy  in  organization.  (Bullock,  pages  82-91.) 

7.  Monopolies.  (Bullock,  pages  169-197.) 

8.  Labor  adjustments.  (Bishop  and  Keller,  pages  385-396.) 

9.  Explain  the  following  quotation  from  Clay's  "Economics 
for  the  General  Reader " :  "  The  employer  buys  labor,  not  the 
laborer ;  if  he  can  get  a  great  deal  of  labor  from  one  man,  he  may 
pay  him  as  well  and  will  probably  pay  him  better  than  buying  a 
little  labor  from  each  of  two  or  three  men." 


CHAPTER  XVIII 

EXCHANGE 

Just  as  a  division  of  labor  results  in  commerce  between  men, 
so  commerce  between  regions  arises  from  those  different 
conditions  of  soil,  climate,  and  environment  which  cause  one 
locality  to  produce  certain  things  cheaper  and  better  than  they 
can  be  produced  elsewhere.  Since  each  person  produces  but 
one  commodity,  he  must  exchange  this  for  whatever  he  re- 
quires ;  since  the  inhabitants  of  a  given  place  produce  and 
export  those  commodities  which  they  can  obtain  in  greatest 
amounts,  or  which  will  bring  them  the  greatest  returns,  they 
are  obliged  to  import  other  products  in  exchange.^  Commerce 
in  the  tropics  consists  of  the  export  of  raw  materials  to  the 
northern  temperate  regions,  and  the  import  of  manufactured 
goods  from  those  regions. 

1  In  the  coconut  region  of  Sariaya,  in  Tayabas  Province,  practically  all  food- 
stuffs and  manufactured  articles  are  imported,  since  it  is  more  profitable  for 
the  people  to  give  all  their  attention  to  their  coconut  groves  than  to  branch 
out  into  other  industries.  Hence  all  available  land  is  planted  with  coconuts. 
Abaca,  sugar  cane,  tobacco,  and  the  coconut  palm  flourish  in  the  Philip- 
pines. Consequently  hemp,  tobacco,  copra,  and  sugar  are  exported,  v^^hile 
rice,  cloth,  machinery,  flour,  and  other  manufactured  products  are  imported. 
So,  in  most  localities,  certain  things  which  are  not  produced  at  all,  or  not  so 
cheaply  as  in  other  regions,  are  imported  and  paid  for  with  those  products 
to  which  the  locality  is  adapted. 

Commerce  also  arises  from  the  habits  of  people.  National  habits  spring, 
for  the  most  part,  from  environment  which  creates  peculiar  material  wants. 
These  habits  are  most  apparent  when  people  move  to  other  lands.  Thus,  the 
Americans  and  northern  Europeans  have  brought  to  the  Philippines  their 
taste  for  butter,  and  the  people  of  southern  Europe  their  taste  for  olive  oil. 
Tea  must  be  imported  into  the  Philippines  for  the  consumption  of  the  Chinese 
and  other  tea  drinkers.  Trepang  (a  sea  slug  obtained  in  the  Philippines)  is 
not  consumed  by  the  Eilipinos,  but  by  the  Chinese.  The  Filipinos  use  many 
fruits,  such  as  papayas,  in  a  green  state,  whereas  Europeans  and  Americans 
consume  them  only  when  ripe, 

392 


EXCHANGE 


Total  Foreign  Commerce  of  the  Philippines 

On  Chart  XXXVI  it  will  be  seen  that  the  total  volume  of 
foreign  trade  was  fairly  constant  during  the  last  years  of  the 


1872 

1874 
1876 
1878 
1880 
1882 
1884 
1886 
1888 
1890 
1892 
1894 
1896 
1898 
1900 
1902 

>    2    §    S    S3    2  S 

cS     S     o>     o>      o>     o> 

1 

_         War 

P467.000.00( 

f 

Average  by  5's              X 

400 

360 
340 
320 
300 
280 
|260 

r 

1 

Reciprocal 

FrelB  Trade 

United  States/ 

a.  240 

(Average  |   1  1 
P200.006.000/j^ 

X 

;/ 

200 

An 

leri 

:an 

1/ 

Occupation 

\ 

/ 

160 

Pl20.006.000, 

i 

140 

^ 

.4>. 

^ 

r 

120 

Spanish  (jccvipat 

on 
000 

/^ 

1 

L 

11 

A 

1 

\ 

^ 

/^ 

f 

"^ 

k^ 

^ 

i-s, 

*?S 

^ 

1 

60 

N 

iO 

20 
0 

_ 

_ 

_ 

_ 

__ 

1 

CHART  XXXVl.  TOTAL  FOREIGN  TRADE  OF  THE  PHILIPPINE  ISLANDS 
IN  MILLIONS  OF  PESOS 

Census  and  Customs  Statistics 


Spanish  occupation.    For  the  twenty  years  from  1874  to  1894 
the  average  total  trade  was  about  P75,000,000. 

This  stagnant  condition  was  changed  by  the  American  occu- 
pation. The  restrictions  on  internal  and  external  trade  were 
removed,  and  interest  in  the  economic  development  of  the 


394  ECONOMIC  CONDITIONS 

country  was  encouraged.  By  1902  the  foreign  trade  of  the 
Philippines  had  increased  to  more  than  Pi 20,000,000,  a  level 
which  was  maintained  until  1909.  In  1909  the  Payne  tariff 
provided  for  reciprocal  free  trade  between  the  Philippines  and 
the  United  States ;  this  gave  to  the  Philippines  a  practically 
unlimited  market  at  prices  much  higher  than  could  be  secured 
in  other  countries  of  the  world.  The  production  of  export 
crops  rapidly  extended ;  by  1913  the  total  trade  of  the  Islands 
reached  the  level  of  more  than  F200,000,000. 

The  trade  would  probably  have  remained  there  had  not 
the  World  War  occurred.  In  1916  the  great  demand  for  raw 
materials  which  this  conflict  caused  finally  affected  the  Islands. 
In  the  last  two  years  of  the  war  the  volume  of  Philippine 
trade  doubled;  in  1918  it  was  more  than  P467,000,000. 

An  examination  of  the  statistics  covering  the  export  of 
hemp,  coconut  products,  sugar,  and  tobacco  indicates  that  the 
larger  part  of  the  increased  value  of  exports  from  1910  to  1913 
was  due  to  increase  in  the  actual  amount  of  products  sent  out 
of  the  Philippines ;  the  amount  of  goods  imported  also  greatly 
increased.  On  the  contrary,  the  increase  in  value  of  exports 
in  1917  to  1918  was  mostly  due  to  war  prices;  that  is,  the 
Philippines  received  much  more  for  only  a  slightly  greater 
volume  of  products,  and  had  to  pay  higher  prices  for  goods 
imported.  In  general,  the  increased  value  of  trade  in  1913 
was  due  to  the  amount  of  goods,  and  in  1918  to  the  high  price. 

What  will  the  post-war  level  of  Philippine  exports  be  ?  It 
will  certainly  be  much  higher  than  the  level  reached  in  1913. 
The  war  demands  have  increased  the  acreage  of  Philippine 
export  crops,  and  a  considerable  percentage  of  war  profits 
have  been  invested  in  improvements  to  agricultural  lands,  and 
in  machinery  to  aid  in  the  manufacture  of  raw  materials,  as 
in  sugar  centrals  and  oil  mills ;  the  world  level  of  prices  has 
permanently  increased,  and  higher  prices  may  be  expected  for 
all  Philippine  products.  World  conditions  indicate  a  perma- 
nent increasing  demand  for  cane  sugar,  copra,  and  oil ;  and  a 
market  for  Philippine  cigars  and  tobacco  has  evidently  been 


EXCHANGE  395 

firmly  established  in  the  United  States.  Of  all  the  principal 
export  crops  of  the  Philippines  hemp  is  the  only  one  that 
does  not  seem  to  have  an  immediately  bright  future ;  it  is 
probable  that  the  slump  in  1919  was  merely  a  repetition  of 
similar  periods  in  the  history  of  abaca.  Although  it  is  prob- 
able that  the  general  level  of  exports  will  not  be  so  high 
as  in  1918,  because  of  the  abnormal  war  prices  ruling  at  this 
time,  nevertheless  there  are  indications  that  the  Philippines 
will  enter  a  period  of  great  prosperity  and  attain  a  volume 
of  trade  much  higher  than  at  any  previous  period.  For  the 
first  six  months  of  1919  the  value  of  exports  from  the  Philip- 
pines had  decreased  about  twenty-five  per  cent  over  the 
exports  for  the  first  six  months  of  1918;  imports  increased 
heavily,  however,  and  as  a  consequence  the  total  trade  for 
the  first  half  of  1919  was  only  a  little  less  than  that  for  the 
first  half  of  1918. 

BALANCE  OF  TRADE 

On  Chart  XXXVII  both  the  imports  and  the  exports  of  the 
Philippines  from  1899  to  1918  are  indicated.  It  will  be  noted 
that  during  certain  periods  imports  have  exceeded  exports ; 
and  that  during  other  periods  exports  have  exceeded  imports. 
In  general,  exports  and  imports  seem  to  counterbalance  each 
other  in  the  foreign  trade  of  the  Philippines.  Large  importa- 
tions of  rice  probably  had  something  to  do  with  excessive 
imports  in  the  years  from  1899  to  1904  and  from  1910  to 
1914.  Imports  would  have  been  much  greater  in  1917  and  1918 
if  it  had  been  possible  to  secure  goods.  With  the  end  of  the  war 
a  greater  proportion  of  orders  from  the  Philippines  were  filled 
in  the  United  States  and  Great  Britain ;  in  the  first  six  months 
of  the  year  1919  imports  had  again  exceeded  the  exports. 

In  1912  Philippine  imports  were  Pl23,000,000,  and  exports 
about  ^110,000,000,  a  difference  of  about  Pl3,000,000.  In 
1916  the  difference  was  P49,000,000,  but  this  was  an  excess 
of  exports  over  imports,  the  exports  for  the  year  having  been 
?140,000,000,  and  the  imports  about  P91,000,000.    Such  a 


396 


ECONOMIC  COKDITIONS 


difference  between  imports  and  exports  is  called  the  balance  of 
trade,  the  significance  of  which  is  usually  misunderstood. 

Two  centuries  ago  the  mercantilist  theorists  supposed  that 
an  excess  of  exports  was  favorable  to  a  country  and  an  excess 
of  imports  unfavorable.  Such,  however,  is  not  the  case,  since 
other  factors  influence  the  balance  sheet  of  the  country  :i 


Items  tending  to  excess  imports 

1.  Imports 

2.  Receipt  of  a  loan 

3.  Interest  on  capital  invested 

in  other  countries 

4.  Earnings    of     native     mer- 

chants abi-oad 

5.  Donations  received 

6.  Profits  of  shipping 

7.  Expenditures  of  other  nations 

8.  Indemnities  received 

9.  Travelers  from  other  coun- 

tries 


Items  tending  to  excess  exports 

1.  Exports 

2.  Repayment  or  an  advance  of 

a  loan 

3.  Payment  of  interest  on  for- 

eign capital 

4.  Profits  of  foreign  merchants 

5.  Donations  given 

6.  Payments  to  foreign  shipping 

7.  Expenditures  made  abroad 

8.  Indemnities  paid 

9.  Travelers     in    other     coun- 

tries 2 


In  the  long  run  the  balance  of  trade  of  the  Philippines 
should  be  favorable.  Excess  exports  should  be  sent  away 
to  pay  (1)  interest  on  large  sums  of  foreign  capital  invested 
here,  (2)  profits  of  foreign  merchants  who  control  the  trade 
of  the  Islands,  (3)  charges  for  the  use  of  foreign  shipping, 
(4)  money  taken  or  sent  away,  (5)  expenditures  of  travelers 
and  students  abroad. 

1  That  both  rich  and  poor  countries  may  have  an  unfavorable  balance  of 
trade  or  a  favorable  balance  may  be  seen  from  the  following  pre-war  figures  : 


Imports 


Exports 


Austria-Hungary 
Belgium  .  ,  . 
Canada  .  .  . 
China  .... 
United  Kingdom 
Brazil  .... 
British  Indies  . 
United  States   . 


$  641,576,000 
832,406,000 
521,448,000 
306,812,000 

3,309,987,000 
256,942,000 
449,583,000 

1,653,265,000 


$  483,773,000 
682,418,000 
290,224,000 
245,538,000 

2,204,322,000 
325,271,000 
719,334,000 

2,170,320,000 


2  Bastable's  ''The  Theory  of  International  Trade.' 


FOREIGN  TRADE 

OF  THE 

PHILIPPINE  ISLANDS 
--Imports 

/ 

i 

/! 

/ 

1 

/ 
1 
1 
1 

1 
1 
1 

^ 

J 

1 
1 

1 
1 
1 

1 
1 
1 
1 

7 

\^ 

"^N 

1 
1 

^' 

^ 

/ 1 

""       ' 

^^ 

^'-- 

• 

7 

1898    1900   1902   1904   1906    1908   1910   1912   1914   1916   1918 

CHART  XXXVII.  FOREIGN  TRADE  OF  THE  PHILIPPINE  ISLANDS  IN 
MILLIONS  OF  PESOS 


Census  and  Customs  Statistics 


398 


ECONOMIC  CONDITIONS 


CHART  XXXVIII.    ARTICLES  INCLUDED 
IN  THE  PHILIPPINE  EXPORT  TRADE 

Averages  of  ten  years  in  percentages 


On  the  other  hand,  the  expenditures  of  the  United  States 
government  for  supplies  for  its  troops  and  vessels  stationed 

here,  and  for  the  payment 
of  these  troops,  tend  to  re- 
duce the  excess  of  exports, 
while  the  inflow  of  foreign 
capital  still  more  greatly 
increases  the  imports,  and 
even  results  in  an  unfavor- 
able balance.  This  may  con- 
tinue for  some  time. 

That  a  rich  country  like 
the  United  Kingdom  should 
have  an  unfavorable  balance 
of  trade,  and  a  poor  country 
like  India  a  favorable  bal- 
ance of  trade,  shows  that 
these  words  are  misnomers 
when  so  employed.  Excess 
imports  and  excess  exports 
are  the  results  of  complex 
conditions,  and  either  of 
them  may  indicate  a  healthy 
condition  of  a  country's  for- 
eign commerce. 

PHILIPPINE    TRADE   WITH 
THE  UNITED  STATES 

The  character  of  exports 
from  the  Philippines  may  be 
seen  in  Chart  XXXVIII. 
The  proportion  of  each  of 
the  four  principal  exports 
in  the  export  trade  from  year  to  year  is  indicated  in  Chart 
XL  In  Chart  XXXIX  may  be  seen  the  character  of  the 
average  imports. 


CHART  XXXTX.    ARTICLES  INCLUDED 
IN  THE  PHILIPPINE  IMPORT  TRADE 

Averages  of  ten  years  in  percentages 


EXCHANGE 


399 


Chart  XL  indicates  that  the  imports  from  the  United  States 
have  greatly  increased  in  importance  since  1909.  Before  that 
time,  and  from  the  beginning  of  the  American  occupation,  the 
imports  into  the  Philippines  came  for  the  most  part  from 
Great  Britain  and  the  United  States,  and  to  a  less  extent 
from  Germany  and  France.    (This  discussion  does  not  include 


100 
90 
80 
70 

60 

c 
v 
"  50 

u. 

40 

30 

20 

10 

0 

1905  1906  1907  1908  1909  1910  1911  1912  1913  1914  1915  1916  1917  1918 

CHART  XL.    COUNTRIES  PARTICIPATING  IN  THE  IMPORT  TRADE  INTO 
THE  PHILIPPINE  ISLANDS  IN  PER  CENT  OF  TOTAL  IMPORTS 

Customs  Statistics 


TT 

nited  States 
tilted  Kingdom 

I, 

Price  Imports  from 

French  Indo-China  not  included. 

/ 

^ 

^ 

^ 

y\ 

' 

_^ 

/ 

^V 

/ 

^ 

_^- 

^\ 

_^ 

/ 

-^ 

V. 

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_-—"'' 





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— 

— 

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'izn 

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^■--> 

the  import  of  rice  from  French  Indo-China.)  Until  1909  Great 
Britain  had  been  the  source  of  about  twenty  per  cent  of  the 
imports  into  the  Philippines ;  the  United  States  controlled 
somewhat  less  than  that  proportion.  In  1909  the  Payne  tariff 
made  it  cheaper  to  import  certain  classes  of  goods  from  the 
United  States,  for  these  paid  no  duties ;  consequently  the 
proportion  of  imports  from  the  United  States  greatly  increased. 
By  1913  the  share  of  the  United  States  in  the  import  trade 
into  the  Philippines  was  fifty  per  cent.    It  would  probably 


400  ECONOMIC  COKBITIOKS 

have  remained  at  those  figures  if  the  World  War  had  not 
made  the  Philippines  dependent  on  America  for  many  articles 
which  would  normally  have  been  procured  in  Europe.  In  1918 
this  had  increased  to  almost  sixty  per  cent. 

Between  1909  and  1913  the  percentage  of  imports  from  the 
United  States  trebled.  In  the  same  period  the  value  of  these 
imports  increased  more  than  fivefold,  that  is,  from  P10,000,- 
000  to  more  than  P50,000,000.  This  happened  because  the 
import  trade  of  the  Islands  increased  very  greatly  during  the 
period  in  question,  and  nearly  all  of  the  increase  came  from 
the  United  States.  Many  products,  such  as  automobiles,  had 
never  before  been  imported  in  quantity ;  other  products  that 
had  previously  been  imported  from  the  countries  of  Europe, 
such  as  cotton  goods  and  iron  and  steel  products  from  Great 
Britain,  sardines  from  Spain,  dyes,  medicines,  and  chemicals 
from  Germany,  jewelry,  watches,  and  fine  goods  from  France, 
were  now  obtained  from  America.  In  the  period  from  1915 
to  1918  about  seventy  per  cent  of  cotton  goods  and  an  aver- 
age of  eighty-five  per  cent  of  iron  and  steel  products  were 
imported  from  the  United  States.  These  are  the  two  largest 
items  in  the  import  trade,  as  will  be  seen  in  Chart  XXXIX. 
The  importance  of  the  trade  of  the  Philippines  with  the 
United  States  can  be  determined  from  the  table  on  page  401, 
which  shows  the  exports  of  the  United  States  to  the  principal 
countries  in  the  years  1918  and  1919. 

Just  as  the  United  States  has  found  a  most  excellent 
market  for  its  goods  in  the  Philippines,  so  have  the  Islands 
disposed  of  their  products  to  the  United  States.  Jn  Chart  XLI 
it  will  be  seen  that  in  1918  sixty-five  per  cent  of  the  value 
of  the  export  trade  from  the  Philippines  went  to  the  United 
States.  In  1914  the  percentage  was  fifty  per  cent;  in  1908, 
before  the  Payne  tariff  became  effective,  it  was  about  thirty 
per  cent.  The  value  of  the  United  States  market  to  the  Phil- 
ippines is  even  better  illustrated  in  Chart  XLIII,  which  takes 
into  account  the  great  increase  in  the  value  of  exports  from 
the  Philippines.    From  1908  to  1914  the  increase  was  from 


EXCHANGE 


401 


Exported 

During  the 

Year  ending 

June,  1919 

During  the 

Year  ending 

June,  1918 

To  Europe 

Austria-Hungary 

$19,441,603 

322,940,837 

93,167,530 

976,696,797 

8,843,882 

22,908,250 

496,174,736 

103,801,757 

101,641,460 

11,390,318 

98,931,638 

78,119,187 

2,147,412,241 

Belgium 

$95,390,695 

4,969,542 

883,734,921 

Denmark 

France 

Germany 

Greece    ... 

2,573,882 

477,898,774 

6,381,964 

25,216,242 

116,705,346 

67,163,288 

4,122,550 

1,995,863,297 

Italy 

Netherlands 

Norway 

Russia  in  Europe 

Spain .  • 

Sweden 

United  Kingdom 

Total  amount  for  exports  to  Europe  .     .     . 

$4,481,470,236 

$3,670,020,501 

To  North  America 

813,723,031 

48,131,130 

119,962,982 

229,545,706 

778,490,022 

43,582,982 

107,077,033 

235,469,608 

Central  America 

Mexico 

Cuba 

Total  amount  for  exports  to  North  America 

$1,211,362,849 

$1,164,619,645 

To  South  America 

Argentine 

Brazil 

138,831,832 
93,294,275 

70,288,581 

109,373,150 
66,270,046 
63,529,124 

Chile  . 

Total  amount  for  exports  to  South  America 

$302,414,688 

$139,172,320 

To  Asia 
China 

82,992,495 

64,272,887 

326,462,268 

41,455,457 

43,476,623 

52,292,943 

267,641,212 

34,718,541 

British  East  Indies 

Japan           

Russia  in  Asia 

Total  amount  for  exports  to  Asia   .... 

$515,185,107 

$398,129,319 

To  Oceania 

Australia  and  New  Zealand 

Philippine  Islands 

1,37,034,154 
69,930,876 

83,960,179 
48,425,088 

Total  amount  for  exports  to  Oceania  .     .     . 

$206,965,030 

$132,385,267 

To  Africa 
British  Africa 

55,344,450 

44,747,874 

Total  amount  for  exports  to  Africa    .     .     . 

$55,344,450 

$44,747,874 

Total  amount  for  exports  to  all  countries    . 

$6,772,742,360 

$5,549,074,926 

402 


ECONOMIC  CONDITIONS 


about  ?20,000,000  to  about  P50,000,000.  But  in  1918  the 
exports  from  the  Philippmes  to  the  United  States  were  ahnost 
P  180,000,000,  being  an  increase  of  ninefold.  All  of  the 
four  chief  exports  from  the  Philippines  entered  into  this  in- 
crease of  exportations.  More  hemp  goes  direct  to  the  United 
States  than  via  London,  and  the  value  of  the  hemp  sent  to 

100 


90 


70 


60 


40 


20 


10 


1905  1906  1907  1908  1909  1910  1911  1912  1913  1914  1915  1916  1917  1918 

CHART  XLI.     COUNTRIES  PARTICIPATING  IN  THE  EXPORT  TRADE  FROM 
THE  PHILIPPINES  IN  PER  CENT  OF  TOTAL  EXPORTS 


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Customs  Statistics 


the  United  States  is  much  greater  than  that  sent  to  England. 
The  product  of  the  numerous  sugar  centrals  and  cigar 
factories,  established  in  the  Philippines  since  1909,  is  prac- 
tically all  sent  to  the  United  States.  During  the  World 
War  the  United  States  absorbed  almost  the  entire  export  of 
Philippine  copra,  and  the  product  of  the  new  Philippine 
coconut-oil  industry.  In  addition,  the  market  furnished  by 
the  United  States  is  responsible  for  the  large  exports  of 
embroidery,  hats,  and  lumber. 


EXCHAKGE  403 

The  growth  of  trade  between  the  United  States  and  the 
Philippines  is  shown  on  Chart  XLIV.  It  will  be  noted  that 
before  the  present  tariff  relations  became  effective,  exports 
to  the  United  States  exceeded  imports  from  that  country. 
Before  the  World  War  they  were  practically  equal.  This 
exchange  of  goods  is  beneficial  to  both  countries,  as  a  study 
of  the  export  figures  will  show.  The  United  States  is  a 
large  importer  of  tropical  raw  products  for  manufacture,  and 
an  exporter  of  manufactured  goods  suitable  for  use  in  the 
tropics.  The  Philippines  supply  many  of  these  raw  materials, 
and  demand  the  manufactured  products.  Of  the  exports  from 
the  Philippines  to  the  United  States  almost  seventy-five  per 
cent  were  raw  or  partly  manufactured,  and  of  the  twenty-five 
per  cent  ready  for  consumption  a  large  part  were  products  of 
handicrafts  which  cannot  be  produced  in  the  United  States. 
Of  imports  from  the  United  States  about  ninety  per  cent  were 
manufactures  and  food  products  ready  for  consumption,  and 
about  ten  per  cent  were  raw  and  partly  manufactured  products. 

The  Philippines  and  the  United  States  are  reciprocal  pro- 
ducers and  consumers.  The  rapidly  increasing  trade  between 
them  is  strengthened  by  the  mutual  elimination  of  trade 
barriers  (tariffs). 

PHILIPPINE  TRADE  WITH  COUNTRIES  OTHER  THAN  THE 
UNITED  STATES 

Since  1909  the  percentage  of  nearly  all  other  countries  in 
the  Philippine  trade  has  been  decreasing.  This  is  particularly 
true  of  the  United  Kingdom,  as  shown  on  Charts  XL  and 
XLI.  The  value  of  imports  into  the  Philippines  from  the 
United  Kingdom  continued  about  stationary  until  the  begin- 
ning of  the  war,  after  which  it  declined,  on  account  of  the 
lack  of  goods  in  the  United  Kingdom,  and  the  lack  of  trans- 
portation facilities.  The  amount  of  goods  exported  to  the 
United  Kingdom  remained  about  the  same,  the  increase  from 
1915  to  1918,  noted  on  Chart  XLIII,  being  almost  entirely 
due  to  the  high  prices. 


404 


ECONOMIC  CONDITIONS 


Before  the  war  Japan's  trade  with  the  Philippines  had  in- 
creased very  greatly,  especially  with  respect  to  imports  into 
the  Islands.  During  the  war  the  manufacturing  industries 
in  Japan  were  greatly  benefited,  because  competition  with 
the  countries   of   Europe  practically  ceased.    It   is  natural 

120 


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11  i  ted  Kingdom 

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Price  Imports  from 

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1905    1906    1907     1908     1909    1910     1911     1912     1913    1914     1915    1916     1917    1918 
CHART  XLII.  COUNTRIES  PARTICIPATING  IN  THE  IMPORT  TRADE 
Customs  Statistics 


that  the  imports  from  Japan  into  the  Philippines  should  in- 
crease, since  Japan  is  so  close,  but  it  is  questionable  whether 
the  rising  line  of  importations  noted  on  Chart  XLII  can  be 
maintained  by  Japan  after  exportations  again  begin  from 
Great  Britain,  France,  and  Germany.  The  increase  in  the 
exportations  to  Japan  noted  on  Charts  XLI  and  XLIII 
were  almost  entirely  due  to  the  abaca-braid  industry,  which 


EXCHANGE 


405 


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nited  Kingdom 
apan 
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1905  1906  1907  1908  1909  1910  1911  1912  1913   1914  1915  1916  1917  1918 

CHART  XLIII.  COUNTRIES  PARTICIPATING  IN  THE  EXPORT  TRADE 

Customs  Reports 

attained  a  large  growth  in  the  years  1912  and  1913  in  Japan ; 

the  raw  material  for  this  industry  came  from  the  Philippines. 

France  has  never  imported  largely  into  the  Islands,  but  has 

been  a  heavy  buyer  of  Philippine  copra  and  to  a  less  extent 


406  ECONOMIC  CONDITIONS 

of  Philippine  tobacco.  The  line  on  Charts  XLI  and  XLIII 
representing  exports  to  France  for  the  most  part  represents 
copra.  The  decrease  in  this  trade  is  a  war  condition.  Whether 
the  line  will  again  rise  when  conditions  in  Europe  become 
normal  is  a  question  of  great  moment  to  the  Philippine  oil 
mills.  The  question  arises,  Will  the  copra  trade  to  France 
be  resumed  ?  If  it  is  resumed,  the  copra  thus  diverted  from 
the  Philippines  will  necessitate  the  closing  down  of  a  number 
of  coconut-oil  mills  in  the  Islands. 

In  addition  to  the  trade  noted  above,  the  Philippines  nor- 
mally import  a  quantity  of  foodstuffs,  especially  flour,  meat, 
and  dairy  products  from  Australia.  Food  products  are  also 
brought  in  from  China,  especially  fish,  fruits,  eggs,  and  ver- 
micelli and  macaroni.  The  import  trade  from  other  countries, 
especially  countries  in  Europe,  is  small. 

In  addition  to  the  countries  already  mentioned,  the  Philip- 
pines export  in  normal  years  a  considerable  quantity  of  tobacco 
to  Spain,  and  a  good  deal  of  sugar  to  China.  Our  exports  to 
other  countries  are  small,  consisting  for  the  most  part  of  the 
four  staple  export  crops  either  in  raw  or  partially  manufac- 
tured state,  such  as  knotted  hemp  to  Italy,  and  cigars  and 
cigarettes  throughout  the  Orient  and  to  Europe. 

Domestic  Commerce  of  the  Philippines 

The  amount  of  a  country's  domestic  commerce  depends  on 
the  territorial  extent  of  the  country,  especially  from  north  to 
south,  the  consequent  different  conditions  of  climate  and  soil, 
and  the  number  of  different  products  raised.  The  United 
States  has  so  great  a  diversity  of  production  because  of  its 
extent  that  it  could  be  self-supporting  if  necessary. 

The  domestic  commerce  of  the  Philippines  is  limited,  be- 
cause there  is  little  diversity  of  production  for  domestic  con- 
sumption. Only  a  few  regions  raise  crops  for  export  to  other 
parts  of  the  Islands.  Such  are  the  orange  regions  of  Batangas, 
the  tobacco  district  of  the  Cagayan,  and  parts  of  the  rice  region 
of  the  Central  Plain  of  Luzon.    In  a  few  places  household 


EXCHANGE 


407 


(T 


articles  are  manufactured  for  domestic  trade,  such  as  the 
cotton  cloths  of  the  Ilocanos,  the  hats  of  Mavitac  and  Cavinti, 
in  Laguna  Province,  and  sleeping  mats  from  several  towns. 
However,  most  regions  of  the  Philippines  are  self-sufficing 
or  produce  crops  for  export  from  the  Islands ;  hence  domestic 
trade  for  the  most  part  consists  of  moving  the  export  crops 
to  the  ports  and  distributing  imports.  In  districts  where  farm- 
ing is  done  for  subsistence,  as  in  Ilocos  Norte,  the  amount 
of  imported  goods  consumed  by  a  family  is  small  indeed. 
The  Ilocano  agriculturist  is  not  a  commercial  farmer;  he  ^ 
produces  just  enough  rice,  corn,  beans,  chickens,  and  hogs  for 
his  own  needs  ;  he  raises  enough  sugar  to  supply  himself  with 
basi,  and  enough  cotton  to  clothe  his  family.  On  the  other 
hand,  in  a  region  devoted  to  export  crops  almost  everything  ^ 
consumed  may  be  imported. 

Internal  Revenue  licenses  and  domestic  money  orders  are 
measures  of  internal  prosperity.  The  following  tables  show 
that  Internal  Revenue  licenses  issued  in  1917  were  more 
than  twice  as  numerous  as  those  issued  in  1919 ;  the  amount 
of  domestic  money  orders  almost  trebled  during  the  same 
period,  and  increased   more  than  sixfold  from  1906  to  1917; 


Year 

Money  Orders  issued  Payable  in 
THE  Philippine  Islands 

Number 

Amount 

1906 

1907 

1908 

1909 

1910 

1911 

94,261 
98,813 
107,751 
126,148 
151,357 
191,614 
160,524 
200,653 
254,880 
285,057 
334,066 
381,874 

P3,687,126.81 
3,229,446.09 
3,645,123.13 
8,017,355.96 
9,781,670.48 

12,265,166.15 

1912 

11,184,401,70 

1913 

1914 

1916 

1916 

1917 

12,848,999.08 
14,880,007.02 
15,453,467.04 
16,996,113.80 
22,487,134.52 

408 


ECONOMIC  CONDITIONS 


Transportation  ^ 

Inland  transportation  in  the  Philippines  is  carried  on  over 
trails  and  roads,  and  by  water  and  railroads.  Trails  are  found 
in  the  less  developed  parts  of  the  Islands,  particularly  in  the 
mountainous  regions.  Human  beings  are  employed  as  porters 
(cargadores)  to  a  great  extent ;  horses  and  carabaos  are  also 

200 


180 


140 
|l20 
«100 


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sports  from  the  Philippines 
nports  into   the  Philippines 

/ 

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1905  1906  1907  1908  1909  1910  1911  1912  1913  1914  1915  1916  1917  1918 

CHART  XLIV.  TRADE  WITH  THE  UNITED  STATES 

Customs  Statistics 


used.  Such  transportation  is  expensive,  and  the  amount  of 
product  that  can  be  carried  is  limited.  The  building  and 
maintenance   of  good  roads    account   in    no    small  measure 

1  To  be  efficient,  transportation  must  be  cheap,  reliable,  and  rapid. 
Transportation  must  be  cheap,  or  goods  cannot  always  be  sold  in  their  proper 
market.  Thus  in  the  year  1910  a  large  part  of  the  orange  crop  in  Batangas 
could  not  be  brought  to  market  on  account  of  the  bad  roads  from  Tanauan 
to  the  railroad.  The  cost  of  transportation  over  the  road  was  so  great  that 
the  price  received  for  the  oranges  would  not  have  repaid  the  farmer.  Trans- 
portation must  be  reliable  in  delivering  the  goods  both  in  good  condition  and 


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410  ECONOMIC  CONDITIONS 

for  the  recent  economic  development  of  the  Phihppines.  The 
increase  in  first-class  roads  can  be  determined  from  the  fol- 
lowing table,  which  gives  the  kilometerage : 

1908 395.0  km. 

1912 ■     .     1780.3  km. 

1915 more  than  3000.0  km. 

1918 more  than  4000.0  km. 

In  addition  there  were  in  1917  some  2000  kilometers  of 
second-class  and  3000  kilometers  of  third-class  roads.  Sleds 
and  carts  with  narrow,  tired  wheels  are  disappearing.  Carts 
drawn  by  carabaos  or  cattle  are  used  for  heavy  roads,  and 
caratellas  pulled  by  horses  for  light  loads  and  passengers. 
Automobiles  are  being  employed  to  an  increasing  extent; 
on  good  roads  they  effect  a  saving  in  both  cost  and  time. 

The  cost  of  transporting  100  kilos  for  one  kilometer  by 
these  various  means  was  estimated  by  J.  C.  Scott,  Head 
Teacher,  Masbate,  as  follows: 

Over  good  roads 

By  cargadores P0.50 

By  carabao  back 0.15 

By  carts 0.04 

Over  bad  roads 

By  cargadores P0.60 

By  carabao  back 0.17 

By  carts 0.17 

By  sleds .  0.15 

with  promptness.  Much  merchandise  is  lost  in  the  Yangtze-kiang  through 
the  Ichang  gorges,  because  boats  must  pass  over  dangerous  rapids,  and  sev- 
eral are  overturned  each  year.  If  merchants  are  expecting  goods  on  a  certain 
date,  they  may  lose  a  considerable  amount  of  money  if  the  goods  arrive  late. 
In  the  case  of  perishable  goods,  such  as  fruits  and  vegetables,  transportation 
must  be  rapid.  The  rice  crisis  of  1919  was  largely  due  to  the  breakdown  of 
transportation  from  the  Central  Plain  of  Luzon  ;  the  direct  cause  was  the 
extraordinary  floods  of  that  year.  Rice  stocks  could  not  be  moved  to  Manila 
for  distribution  to  the  provinces  in  which  there  was  a  shortage. 


EXCHANGE  411 

Transportation  over  a  poor  road  in  the  rainy  season  may 
cost  five  times  as  much  as  in  the  dry  season.  Everywhere  ex- 
cellent examples  are  available  of  the  reduction  in  the  cost  of 
transportation  by  the  building  of  good  roads.  In  many  cases 
the  new  rate  is  only  a  half  or  even  a  fifth  of  the  former  tariff.^ 

The  construction  of  a  railroad  into  a  community  nearly 
always  results  in  an  industrial  awakening.    This  has  been  seen 


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CAirrS  ON  A  FIRST-CLASS  ROAD 

in  many  parts  of  the  Islands  which  have  been  recently  con- 
nected with  a  market  by  a  railroad.  There  are  now  in  the 
Philippines  1,225.85  kilometers  of  railroads,  of  which  1,013.85 
kilometers  are  in  Luzon,  95.6  kilometers  in  Cebu,  and  116.4 
kilometers  in  Panay.  One  fourth  of  the  people  are  reached 
by  railroads.  Ownership  of  railroads  is  an  important  consider- 
ation in  all  countries.    If  a  community  is  connected  with  its 

1  Products  have  a  fixed  price  in  the  market ;  hence,  if  the  localities  where 
the  products  are  made  are  connected  with  the  market  by  poor  means  of  trans- 
portation, the  cost  of  the  articles  imported  will  be  correspondingly  high.  A 
region  having  good  facilities  for  transportation  can  send  its  products  to  the 
market  at  little  cost,  but  one  which  has  poor  facilities  must  pay  extra  for 
carriage.  Thus,  if  the  market  price  of  a  certain  grade  of  abaca  fiber  is  ten 
pesos  per  pico,  a  town  which  has  good  transportation  facilities  pays  one  peso 


412  ECONOMIC  CONDITIONS 

market  by  a  railroad  which  is  poorly  managed,  or  which  charges 
high  rates,  the  community  will  suffer.  In  Europe  railroads 
are  owned  for  the  most  part  by  the  respective  governments. 
In  the  United  States  and  many  other  new  countries  the  rail- 
roads are  owned  by  private  capital  (corporations),  although 
the  government  attempts  to  exercise  a  control  over  them  to 
prevent  discrimination  in  prices  against  certain  communities. 
In  the  Philippines  the  railroads  of  Luzon  are  owned  by  the 
government;  arrangements  have  been  made  to  bring  even- 
tually most  of  the  mileage  of  Cebu  and  Panay  also  into  the 
possession  of  the  government.  The  new  railroads  are  not  only 
opening  up  regions  Avhich  were  backward  on  account  of  the 
conditions  of  transportation,  but  are  also  offering  quick  and 
cheap  means  of  travel,  so  that  the  people  of  these  regions  are 
becoming  less  provincial  and  more  progressive,  and  labor  is 
becoming  more  mobile.  The  Filipinos  have  shown  also  that 
they  enjoy  travel. 

The  cheapest  form  of  transportation,  although  not  the  quick- 
est, is  by  water.  Waterways  require  much  less  labor  and  less 
power  to  propel  a  given  weight  than  do  roads  or  railroads. 
Most  Philippine  products  intended  for  domestic  consumption 
are  carried  to  market  in  dugouts,  lighters,  launches,  and  small 
sailboats.  Much  of  the  abaca  fiber,  copra,  sugar,  and  tobacco 
is  brought  to  the  ports  of  entry  by  these  carriers. 

In  archipelagoes,  such  as  the  Philippines,  interisland  com- 
munication is  of  great  importance.  Ocean  vessels  load  and 
unload  at  the  ports  of  entry.  Smaller  interisland  steamers, 
sailing  vessels,  and  other  minor  craft  take  the  goods  from 


per  pico  to  get  its  products  there,  while  another  locality  connected  by  poor 
roads  will  perhaps  pay  five  pesos  per  pico.  The  gross  return  in  the  first  case 
will  be  nine  pesos,  and  in  the  second  case  only  five  pesos  per  pico,  and  abaca 
will  have  a  higher  price  in  the  first  locality. 

Therefore,  poor  means  of  transportation  increase  the  price  of  imports  and 
decrease  the  price  of  exports,  and  good  means  of  transportation  decrease  the 
price  of  imports  and  increase  the  price  of  exports.  As  has  been  shown,  the 
export  of  abaca  fiber  from  mountain  regions  ceases  when  the  market  price 
falls,  since  the  cost  of  transportation  is  not  covered. 


A  Pack  Tkaix  from  the  Highlands 


A  Bamboo  Sled 


A  Primitive  Cart 
PHILIPPINE  TRANSPORTATION 


414 


ECONOMIC  CONDITIONS 


these  principal  points  and  distribute  them  throughout  the 
Islands ;  at  the  same  time  they  take  on  board  the  produce 
from  the  minor  ports  to  bring  it  to  the  ports  of  entry  for  ex- 
port. Such  communication  by  *water  needs  only  good  roads 
and  railroads  connecting  the  shore  towns  with  the  inland  parts 
of  the  Islands  to  make  an  excellent  transportation  system. 


^-^ 

'-^^ 

ii^J  ||:         —  ^tT''^  ^ 

^^^,; 

1 

m 

AUTO  TRUCKS  IN  MANILA 


Transportation  Centers  and  Markets 

Communities  grow  where  there  are  favorable  agricultural 
and  manufacturing  conditions.  They  also  exist  where  prod- 
ucts can  be  easily  gathered  and  distributed.  Thus  Manila  is  a 
center  of  transportation,  or  center  of  commerce,  where  the  prod- 
ucts of  the  Philippines  are  gathered  for  export,  and  where 
imported  goods  are  brought  for  distribution  throughout  the 
Islands.  It  is  the  natural  outlet  for  the  products  of  the  Cen- 
tral Plain  of  Luzon  and  the  region  of  Laguna  de  Bay,  and  a 
transshipment  point  for  interisland  trade  of  the  Archipelago  as 
a  whole.  Cebu  is  the  port  for  the  eastern  Visayas  (for  abaca 
and  copra)  and  Iloilo  for  the  western  (for  sugar).    Hongkong 


EXCHANGE 


415 


is  a  distributing  and  gathering  point  of  northern  Asia  both  by 
way  of  the  Suez  Canal  and  the  Pacific  Ocean  to  the  western 


SHIPS  ALONG  A  PHILIPPINE  COAST 


coast  of  America.    Part  of  the  foreign  commerce  of  Manila, 
Cebu,  and  Iloilo  goes  through  Hongkong;   several  steamers 


A  DOCK  AT  MANILA 


are  regularly  engaged  in  carrying  goods  between  these  points. 
The  importance  of  this  transshipment  trade  has  decreased  with 
the  establishment  of  more  direct  sailings  from  Philippine  ports 


416  ECONOMIC  CONDITIONS 

to  Europe  and  the  United  States.  Singapore  is  an  important 
center  of  transportation  of  southern  Asia,  whence  the  goods 
from  Europe  and  the  eastern  part  of  the  United  States  com- 
■ing  through  the  Suez  Canal  are  distributed,  and  where  prod- 
ucts are  picked  up  to  be  sent  to  Europe  and  America.  The 
Philippines  receive  some  goods  shipped  via  Singapore ;  they 
send  some  of  their  copra  and  much  rattan,  resins,  pearl  shells, 
and  the  like  for  shipment  through  Suez.  Zamboanga,  the 
center  of  transportation  of  the  Moro  Province,  is  in  direct 
communication  with  Singapore.  Plans  are  under  way  to  make 
Manila  the  center  of  transportation  for  the  trade  of  the  United 
States  with  the  tropical  Orient.  The  raw  products  of  the  East 
Indies,  Malay  Peninsula,  and  India  will  be  brought  to  Manila 
and  shipped  direct  to  San  Francisco.  Manila  will  also  be  a 
distributing  point  for  manufactures  of  the  United  States  des- 
tined for  these  regions.  Thus  Manila  will  bear  the  same  rela- 
tion to  foreign  commerce  of  the  neighboring  Oriental  countries 
that  she  now  bears  to  the  provincial  trade  of  the  Philippmes. 
Important  centers  of  transportation  for  interisland  commerce 
in  export  products  are  as  follows : 

Aparri  and  Lalloc  for  Cagayan  Valley Tobacco 

San  Pablo,  Laguna  Province Copra 

Lucena,  Tayabas  Province Copra 

Daet  and  Naga,  Camarines  Province ....      Abaca  and  copra 

Legaspi,  Albay  Province Abaca  and  copra 

Gubat  and  Sorsogon,  Sorsogon  Province      .     .       Abaca  and  copra 
Capiz  and  New  Washington,  Caj^iz  Province  ,      Abaca  and  copra 

Romblon,  Komblon  Province Copra 

Calbayog,  Catbalogan,  and  Borongan,  Samar  Province 

Abaca  and  copra 
Carigara,  Palompon,  and  Baybay,  Leyte  Province  .  .  .  Abaca 
Dumaguete,  Oriental  Negros  Province  .  .  .  Abaca  and  copra 
Cagayan,  Misamis  Province Abaca  and  copra 

The  following  are  important  market  towns  for  the  gathering 
and  wide  distribution  of  products  in  the  domestic  trade : 


EXCHANGE  417 

Candon  and  Vigan,  Ilocos  Sur.  General  market  for  large  district 
San  Fernando,  Union  Province.  General  market  for  large  district 
San  Fernando  and  Guagua,  Pampanga  .     .     .       General  markets 

Dagupan,  Pangasinan General  market  for  province 

Gapan,  Nueva  Ecija General  market  for  province  \^ 

Calumpit,  Bulacan General  market  for  province 

Baliuag,  Bulacan    ....       General  market  for  rice,  hats,  etc. 

Pasig,  Rizal General  market  for  province 

Indang,  Cavite General  market  for  highlands 

Bauan,  Batangas General  market  for  province 

Pagsanjan,  Laguna  .     .      Coconuts,  oil,  areca  nuts,  fruits,  hats,  etc. 

Ormoc,  Leyte      .     .     .   • Grain 

Carcar,  Cebu Corn,  eggs,  fruit,  etc. 

Oton,  Iloilo General  market  for  southern  Panay 

Jaro,  Iloilo General  market  for  northern  Iloilo 

Calivo,  Capiz General  market  for  Aclan  Valley 

In  addition  there  are  many  other  market  towns  on  which 
a  smaller  region  is  dependent  for  interchange  of  products. 

Markets  are  not  continuous,  but  are  held  at  stated  intervals, 
once  or  twice  a  week,  for  a  period  of  from  one  to  three  days. 
The  country  people  flock  to  these  markets  with  their  surplus 
products  to  sell  or  exchange,  and  merchants  likewise  come  to 
buy,  sell,  or  exchange.  The  centers  of  transportation  and  the 
markets  are  usually  one  of  the  following  points:  (1)  the 
center  of  a  rich  agricultural  district ;  (2)  the  head  of  naviga- 
tion on  a  river ;  (3)  the  crossing  or  junction  of  railroads,  rivers, 
and  other  means  of  transportation ;  (4)  places  where  goods 
must  be  transshipped,  as  from  small  to  large  vessels,  or  from 
land  to  water  transportation,  and  vice  versa;  (5)  a  good 
harbor;   (6)  places  where  festivals  are  observed. 

Markets  and  Merchants 

In  primitive  communication  the  exchange  of  goods  between 
producers  is  effected  at  fairs  or  markets.  Such  commercial 
gatherings  are  found  in  all  countries  of  the  world.  In  the 
Philippines  exchange  occurs  in  the  larger  markets  noted  above, 


418 


ECONOMIC  CONDITIONS 


but  more  particularly  in  the  small  local  markets  found  in  most 
of  the  municipal  centers  and  in  many  barrios.  The  poorest  of 
these  display  only  small  quantities  of  rice,  corn,  vegetables,  and 
sometimes  meat.  The  largest  contain  meat  (pork  and  beef), 
fish,  vegetables,  minor  household  necessities,  domestic  and 
imported  cloths,  chickens,  eggs,  bread,  kerosene,  rice,  corn. 


OUTSIDE  A  PHILIPPINE  MARKET 


o( 


pottery,  Cutlery,  hats,  mats,  native  sugar,  tobacco,  rope,  fruits, 
salt,  beverages  (tuba  and  vino),  and  canned  goods  (salmon, 
sardines,  milk,  beef,  fruits).^ 

In  such  markets  producers  often  dispose  of  their  articles 
directly  to  consumers  for  money  or  in  trade.  In  general, 
however,  the  domestic  as  well  as  the  export  products  of  the 
Philippines  are  exchanged  through  merchants.^ 

1  These  markets  have  received  special  attention  to  improve  their  sanitary- 
condition.  Many  municipalities  have  built  new  sanitary  markets,  which  will 
greatly  assist  in  making  more  healthful  conditions  in  the  Islands. 

2  The  business  of  the  merchant  is  to  gather  the  products  of  different  per- 
sons and  places,  and  to  distribute  them  to  the  consumer.  The  merchant  stands 


EXCHANGE  419 

The  domestic  commerce  of  the  PhiHppines  is  mostly  in  the 
hands  of  Chinese  merchants;  the  foreign  trade  is  controlled 
almost  entirely  by  Europeans,  Americans,  or  Chinese.  The 
wandering  traders  are  usually  Filipinos,  who  deal  in  domestic 
products,  although  a  relatively  few  are  Chinese,  East  Indians, 
Syrians,  and  Japanese,  who  deal  in  foreign  wares.  The  Fili- 
pinos keep  the  smaller  tiendas  and  market  stalls.  They  are 
the  buyers  of  hats,  embroidery,  and  other  household  products 
for  export,  and  usually  those  for  domestic  consumption.  The 
Chinese  are  large  importers  and  wholesale  merchants  in  the 
ports  of  entry,  keepers  of  small  stores  in  all  parts  of  the  Islands, 
and  owners  of  interisland  steamers.  By  purchase,  barter,  and 
extension  of  credit  they  obtain  most  of  the  abaca,  copra,  sugar, 
and  tobacco  from  small  producers  and  sell  to  other  middlemen 
or  to  export  houses.    They  also  trade  in  rice  and  corn  in  the 

between  the  producer  and  the  consumer.    Through  the  intervention  of  the 
middleman  the  producer  is  able  to  concentrate  his  effort  on  production. 

The  process  by  which  Philippine  hats  reach  the  consumer  in  Europe  and 
America  will  illustrate  the  system  of  marketing  through  merchants.  In 
Lucban  the  brokers  and  wholesalers  go  from  house  to  house  buying  hats,  or 
they  purchase  the  hats  brought  to  them  by  the  weavers  in  their  employ.  In 
Baliuag  many  hats  are  sold  in  the  market,  which  occurs  twice  a  week,  and 
to  which  the  weavers  bring  their  products  for  disposal.  The  hats  so  gathered 
by  the  merchants  are  bought  by  exporters  in  Manila,  and  sent  to  import  mer- 
chants in  Europe  and  the  United  States,  where  they  are  again  sold  to  facto- 
ries or  wholesalers,  who  in  turn  dispose  of  them  directly  or  indirectly  to 
retail  stores.  Thus  they  finally  reach  the  consumer.  During  the  rice  inves- 
tigation in  1919  it  developed  that  there  were  in  Manila  some  forty  wholesale 
rice  merchants  who  secured  their  supplies  from  the  provinces  or  locally  in 
large  quantities.  These  supplies  were  sold  usually  on  credit  to  about  a  hun- 
dred middlemen,  jobbers,  or  brokers  in  rice,  who  in  turn  disposed  of  the 
rice,  sometimes  for  cash  but  more  often  for  credit,  to  about  a  thousand 
retailers,  who  again  disposed  of  it  to  the  public  direct,  sometimes  for  cash, 
more  often  on  credit.  Thus  the  rice  was  distributed  from  its  source,  the 
wholesaler,  down  through  the  different  middlemen  to  the  final  consumer. 
It  will  be  noted  that  credit  was  also  distributed  in  like  manner,  the  one  link 
in  this  chain  of  exchange  being  dependent  on  the  other.  For  instance,  if  the 
retailer  had  suddenly  been  suppressed,  rice  could  not  have  reached  the  con- 
sumer, because  the  broker  and  the  jobber  would  have  been  unable  to  reach 
the  consumer,  and,  not  knowing  him,  would  not  have  been  able  to  grant 
credit.  In  the  same  way,  if  the  middleman,  jobber,  and  broker  had  been 
suppressed,  the  wholesaler  would  not  have  been  able  to  reach  the  retailer. 


cV 


420  ECONOMIC  CONDITIONS 

districts  in  which  these  are  raised  in  surplus.  Occasionally 
they  deal  in  household  products  for  domestic  consumption, 
especially  hats.  Often  their  stores  are  merely  run  in  connec- 
tion with  their  buying  activities,  as  convenient  places  to  attract 
farmers  with  products  for  exchange  or  sale.  It  is  noticeable 
that  the  Chinese  merchants  predominate  in  the  Visayas  and 
the  Bicol  Peninsula.  They  control  most  of  the  trade  in  Nueva 
Ecija,  the  Ilocano  provinces,  and  the  Cagayan  Valley.  In 
many  parts  of  the  Tagalog  provinces  natives  control  the  larg- 
est part  of  the  commerce.  In  a  few  places  there  are  no  Chinese. 
Taal-Lemery,  m  Batangas,  is  the  most  noteworthy  of  these.^ 

1  With  the  possible  exception  of  Manila,  Taal  is  the  oldest  known  settle- 
ment of  the  Tagalogs.  Pressure  of  population  in  the  middle  of  the  nineteenth 
century  forced  many  of  the  people  to  emigrate  to  other  provinces  and  islands  ; 
the  same  causes  have  developed  small  manufactures  and  commerce.  Taal 
and  Lemery  constitute  one  community  ;  after  considerable  losses  by  emi- 
gration they  still  have  about  forty  thousand  people.  In  area  these  tow^ns  are 
small,  and  have  no  large  barrios,  so  that  the  bulk  of  the  population  is  gath- 
ered at  the  mouth  of  the  Pancipit  River.  This  tends  to  a  larger  proportion 
of  educated  and  ambitious  families.  The  people  of  Taal  are  industrious  and 
thrifty,  and  have  an  instinct  for  trade.  It  is  impossible  to  say  w^hence  these 
qualities  were  derived,  whether  they  came  from  Chinese  ancestors,  from  com- 
petition with  the  Chinese,  or  from  the  keen  struggle  for  existence  in  Taal. 
Probably  the  last  is  the  case.  The  Taalenos  are  noted  for  a  certain  hostility 
to  strangers.  This  includes  not  only  Americans  and  Chinese,  but  also  Fili- 
pinos of  other  towns.  The  list  of  permanent  merchants  in  1911-1912  shows 
a  hundred  and  ten  firms  or  individuals.  Some  of  the  partnerships  consist  of 
as  many  as  ten  persons.  About  three  hundred  persons  are  known  to  be  con- 
nected with  mercantile  concerns  which  have  a  total  capital  of  P  190,000,  an 
average  of  PI 727  to  the  firm.  The  smallest  capital  employed  is  P500,  and 
the  largest  P 20,000.  The  total  yearly  purchases  of  these  hundred  and  ten 
traders  amount  to  P 270,940  ;  the  yearly  sales,  to  P 343, 780.  The  difference 
presumably  represents  the  gross  profit.  Transportation  charges  will  probably 
reduce  this  by  twenty-five  per  cent.  Fourteen  of  these  firms  operate  tiendas 
in  other  towns  of  Batangas  and  other  provinces.  Seventeen  others  of  these 
traders  have  tiendas  in  Taal. 

Trade  in  Taal  is  favorable  for  democracy.  The  social  position  of  a  mer- 
chant there  is  unquestioned.  The  merchant  class  controls  the  social  and 
political  activities  of  the  town.  Some  of  these  merchants  can  speak  no  lan- 
guage but  Tagalog,  and  are  anything  but  educated  men  ;  nevertheless,  since 
the  American  occupation  they  have  grown  rich  enough  to  buy  and  sell  the  old 
landed  aristocracy.  The  most  notable  example  of  business  success  here  is  the 
owner  of  the  fleet  of  steamers.  Twenty  years  ago  he  was  a  servant  in  the 
house  of  a  family  In  Lemery  ;  he  now  has  about  a  dozen  vessels  plying 


EXCHANGE  421 

The  causes  which  contribute  to  the  success  of  the  Chinese 
as  merchants  in  the  Phihppines  are  varied  and  intricate. 
These  people  have  proved  themselves  natural  traders  in  all 
parts  of  the  world.  They  are  apparently  able  to  please  their 
customers  in  the  Philippines.  They  are  content  with  a  small 
profit,  are  thrifty,  and  accumulate  capital.  When  the  Spaniards 
landed  in  the  Philippines,  the  Chinese  were  already  engaged 
in  trade  here  and  rapidly  availed  themselves  of  the  oppor- 
tunity brought  by  the  newcomers  to  exchange  the  silks  and 
finery  of  China  for  the  silver  of  Mexico.  Soon  they  established 
themselves  in  the  domestic  trade  under  the  protection  of  the 
Spaniards.  In  spite  of  periods  of  persecution  and  exclusion 
from  the  country  they  have  built  up  a  large  commercial 
organization  consisting  of  importers,  wholesalers,  middlemen, 
retailers,  and  buyers,  and  a  credit  system  extending  through 
all  of  these.  Thus  the  Chinese  storekeepers  can  offer  credit 
where  the  Filipinos  cannot.  In  their  commercial  efforts  the 
Chinese  have  had  little  competition  from  the  Filipinos,  who 
not  only  have  lacked  business  initiative  and  ability,  and 
have  not  the  saving  instinct,  nor  the  capital,  but  have  had 
their  entire  means  invested  in  agriculture,  and  have  wished 
for  too  large  profit.  Filipinos  of  all  classes  are  now  evincing 
greater  interest  in  commerce  and  industry.  In  many  places 
their  private  commercial  ventures  are  succeeding,  and  the 
number  of  Filipinos  forming  commercial  corporations  is  con- 
stantly increasing.  In  certain  towns  (as  in  the  highland  region 
of  Laguna)  the  idea  of  turnuhan  appears  in  cooperative 
organizations  of  natives  in  retail  stores  and  in  the  wholesale 
trade.   The  proportion  of  native  women  engaged  in  commercial 

between  the  ports  of  Manila,  southern  Luzon,  and  the  northern  Visayas,  in 
addition  to  considerable  interests  in  Manila.  His  fleet  of  steamers  furnishes 
Taal  quick  communication  with  Manila  and  the  neighboring  provinces.  The 
trading  class  in  Taal  is  eflficient.  During  the  recent  shortage  of  rice  Taal 
probably  suffered  as  little  as  any  other  town  in  the  Islands  which  imports 
the  bulk  of  its  rice.  The  merchants  here  brought  in  sufficient  supplies  at  all 
times,  and  the  price  never  became  very  dear.  The  people  of  Taal  are  always 
looking  for  a  chance  to  buy  land  or  a  good  location  for  a  new  store.  (From 
a  report  by  John  H.  Brown,  Supervising  Teacher,  1912.) 


422  ECONOMIC  CONDITIONS 

ventures  is  greater  in  the  Philippine  Islands  than  in  most 
other  countries  of  the  world. 

The  relation  of  merchants  to  the  Philippine  agricultural 
classes  does  not  end  with  the  mere  exchange  of  produce  for 
articles  of  consumption.    The  merchants  are  in  a  position  to 
advance  new  ideas  in  agriculture,  to  introduce  and  encourage 
new  and  remunerative  crops,  to  establish  standardization  of 
products,  to  increase  the  standard  of  quality,  and  to  create 
new  markets.    The  retail  merchants,  especially,  have  a  great 
opportunity ;  but  thus  far  their  effect  on  agriculture  has  been 
.  reactionary  rather  than  progressive.    Looking  on  trade  from 
j    the  narrow  point  of  view  of  immediate  profit,  they  have  taken 
j    from  the  small  farmers,  by  sharp  methods  and  a  pernicious 
i    advance  of  credit,  all  incentive  to  greater  effort  and  produc- 
I    tion.i    Buying  without  reference  to  grade,  they  have  encour- 
aged the  production  of  inferior  qualities  of  tobacco,  abaca 
fiber,  and  copra.^ 

The  use  of  more  enlightened  methods  by  retail  merchants 
would  hasten  the  industrial  progress  of  the  Philippines. 

WANDERING  TRADERS 

The  wandering  traders  are  mostly  Filipinos.  In  many 
well-populated  districts  peddlers  are  found  who  hawk  their 
wares  over  a  limited  area.  Many  permanent  merchants  also 
send  out  goods  in  care  of  employees.  From  a  few  regions, 
where  pressure  of  population  is  great,  wandering  traders  do 
business  over  an  extensive  territory.  The  principal  regions 
visited  by  the  Ilocanos,  Macabebes,  Boholanos,  and  Taaleiios 
are  shown  on  Chart  XLV.  The  Mariquina  shoe  peddlers 
and  the  peddlers  of  Iloilo  are  also  encountered  in  a  number 
of  provinces,  but  these  people  do  not  wander  far  from 
their  homes. 

The  Ilocano  traders  are  often  small  landowners.  They  lease 
*    to  others  and  sometimes  mortgage  their  holdings  to  raise  the 

1  See  this  chapter  under  the  heading  Credit  (p.  428). 

2  On  these  products,  see  Chapters  V,  VI,  VIII. 


EXCHANGE  423 

necessary  capital  to  finance  their  trading  ventures.  During 
the  tobacco  harvest  they  go  in  great  numbers  each  year  to 
Cagayan.  They  sell  Ilocano  cloth,  sugar,  and  native  hats,  and 
usually  bring  back  tobacco,  preserved  fish,  nito,  rattan,  and 
lumber,  to  vend  in  their  own  towns.  Money  passes  twice, 
and  two  profits  are  thus  made.  Very  little  barter  occurs  in 
these  enterprises.  The  merchants  belong  to  the  middle  class, 
but  take  with  them  servants  and  dependents  to  peddle  their 
wares.  The  commercial  activities  of  the  Ilocanos  in  the 
Central  Plain   of  Luzon   are  not  so  important.^ 

In  Macabebe  there  are  from  eight  hundred  to  a  thousand 
persons  engaged  in  traffic  with  other  provinces.  About  two 
thirds  of  this  number  are  engaged  as  cargadores,  who  are 
paid  from  ten  to  fifteen  pesos  a  month  besides  subsistence. 

Few  of  these  traders,  hardly  ten  per  cent,  have  money  of 
their  own  invested  in  their  enterprise.  About  half  of  the 
whole  capital  is  furnished  on  mortgage  by  a  few  wealthy 
men  of  Macabebe,  with  an  annual  interest  ranging  from 
twenty-five  to  sixty  per  cent;  the  rest  is  obtained  from  the 
Chinese  merchants  in  Manila  in  cloths  and  other  goods,  in 
many  cases  without  any  security.  Many  of  these  traders  are 
small  landowners,  whose  relatives  till  their  holdings  in  their 
absence.2 

Wandering  traders  go  from  Taal  also,  and  many  of  the  per- 
manent merchants  there  send  out  wandering  representatives. 

The  activities  of  the  Boholanos  in  northern  Mindanao  may 
be  judged  by  the  following  description :  ^ 

A  party  of  Boholanos  leave  their  town  in  a  banca  owned  in  common. 
The  men  are  usually  owners  of  small  amounts  of  land  at  home.  They 
carry  with  them  cloths  of  various  kinds,  steel  articles  of  their  own 
manufacture,  nipa  hats,  ticog  hats,  loom-woven  mats,  fighting  cocks, 
and  general  novelties.  The  first  point  of  venture  is  generally  some  place 
where  they  can  dispose  of  their  goods  for  cash.  They  may  leave  their 
banca  in  a  creek,  and  travel  on  foot,  selling  as  they  go.   When  they 

1  Report  of  G.  Glenn  Lyman. 

2  From  a  report  by  Benito  Pangilinan. 

8  By  Lewis  S.  Thomas,  Supervising  Teacher,  Misamis-Surigao. 


424  ECONOMIC  CONDITIONS 

have  sold  out,  or  believe  that  the  trade  will  not  absorb  more,  they  go  to 
some  fishing  point.  In  January  the  objective  points  are  Cagayan  and 
Tagoloan.  There  they  lay  in  a  load  of  salted  hipon,  sometimes  catch- 
ing the  fish  themselves,  and  then  go  on  to  Camiguin  to  sell  it,  and 
thence  proceed  homeward.  Another  banca  may  go  to  the  mouth  of 
the  Agusan.  Here  the  traders  barter  for  salt  fish,  as  well  as  sell  goods. 
If  time  permits,  they  may  go  to  some  point  where  salt  fish  is  needed, 
and  sell  their  stock.  At  Opol,  for  instance,  they  will  load  up  with 
earthern  pots,  which  are  salable  all  over  the  coast.  These  pots  cost 
from  P0.02^  to  PO.IO,  and  sell  at  from  P0.05  to  F0.20  in  Camiguin. 
This  is  considered  a  good  profit.  A  banca  sells  out  its  fighting  cocks 
along  the  coast  from  Baliango  to  Iligan  or  Initao.  Then  it  sets  out  for 
Cagayan.  Here  the  traders  may  go  up  into  the  Bukidnon  District  to 
buy  mats  of  sudsud,  which  yield  a  profit  of  a  hundred  per  cent  in  Bohol. 
Another  banca  may  sell  out  its  goods  at  Medina,  and  lay  in  tobacco, 
which  it  sells  at  Cagayan  and  converts  the  money  into  salt  fish.  So  the 
process  goes  on.  At  last  the  traders  return  to  Bohol,  loaded  either  .with 
money  or  with  salable  articles. 

The  system  followed  in  financmg  these  expeditions  is 
explained  in  the  following  description  of  the  barrio  of  Gui- 
wanon,  town  of  Maribohok,  Bohol :  ^ 

An  old  man  is  the  financier  of  the  wandering  merchants  of  this 
barrio,  of  whom  there  are  more  than  a  hundred.  For  more  than  twenty- 
five  years  he  has  been  in  the  business  of  advancing  them  money  and 
equipping  them  for  their  journeys,  at  the  rate  of  twenty  per  cent  for  the 
money  advanced  and  one  third  of  the  net  profits  of  the  venture.  The 
barrio  of  Guiwanon  is  one  of  the  most  prosperous  communities  on 
this  coast. 

Money 

Barter,  the  exchange  of  goods  for  goods,  does  not  exist  in 
the  Philippines  to  the  extent  that  might  be  supposed  from 
the  large  number  of  primitive  people  found  here.  Trading 
is  still  carried  on  with  the  Negritos  and  semicivilized  tribes ; 
but  even  among  them  money  is  now  employed  as  freely  as 
in   the   lowlands.^    It  is  only  in  the  most  remote  districts, 

1  By  Jacob  G.  Lang,  Supervising  Teacher. 

2  Commerce  undoubtedly  grew  out  of  the  exchange  of  gifts.  That  rem- 
nants of  this  idea  still  exist  in  the  Philippines  is  indicated  by  the  following 


PHILIPPINE  ISLANDS 

HEGIONS  VISITED  BY  TRADERS 

^^     Boholanos 

^^    "Macabebes 

11     IlocanoB 

I       I      Taal-Lemerymen 
" '      (Batangas) 

(Data  from  Economic  Reports, 
Bureau  of  Education ) 


^ 


HV.CX 


CHART  XLV 


426  ECONOMIC  CONDITIONS 

where  the  influence  of  the  government  is  felt  the  least,  that 
barter  is  still  the  rule.  In  the  Sulu  Archipelago  the  only 
markets  which  the  government  has  anything  to  do  with  are 
located  at  Jolo,  Siasi,  and  Bongao.  Almost  every  headman 
has  a  market  day  in  his  district  at  least  once  a  week.  On 
these  days  the  people  gather  from  miles  round,  bringing 
tapioca,  fish,  betel  nuts,  and  fruits.  These  they  exchange 
for  whatever  they  need.  Often  a  person  with  money  can 
buy  nothing  at  all  here.  Exchange  is  the  custom  in  the 
markets,  but  in  the  three  markets  named  above  money  is 
accepted  as  readily  as  exchange,  since  the  markets  are  larger 
and  the  money  may  easily  be  turned  into  whatever  is  needed.^ 

Among  the  Filipinos  barter  is  carried  on  in  the  markets, 
and  to  some  extent  in  the  stores.  Often  chickens,  eggs,  and 
small  quantities  of  farm  produce  are  exchanged  for  oilcloth 
and  the  like.  Barter  is  important  in  the  marketing  of  export 
crops  by  small  producers.  These  people  often  carry  their 
tobacco,  copra,  or  abaca  to  the  tienda,  and  receive  food,  cloth, 
drink,  and  other  articles  for  it. 

As  merchants  are  middlemen  between  producers  and  con- 
sumers, so  money  is  the  medium  which  acts  between  products 
sold  and  products  bought.  An  essential  quality  of  money  is 
that  it  must  possess  value.  The  articles  first  utilized  as 
money  by  a  people  are  those  most  valued  by  them.  Thus, 
throughout  the  Philippines  rice  was,  and  sometimes  still  is, 
used  as  money.    Corn,  pearl  shell,  and  coconuts  are  less  often 

extract  from  the  report  of  Lewis  S.  Thomas,  Supervising  Teacher,  concerning 
the  Bukidnons  of  Mindanao  : 

Barter  among  these  people  cannot  be  carried  on  unless  certain  conventions  of 
friendship  are  first  performed.  It  appears  in  all  business  with  these  people,  even 
the  Christians,  that  to  sell  a  thing  merely  for  the  money  is  not  honorable.  There 
must  be  at  least  the  fiction  of  a  bond  between  the  parties.  In  purchasing,  the 
people  will  distinguish  between  barter  (bailo)  and  exchange  by  means  of  money. 
"  Ambit  "  is  another  word  that  is  used  even  in  cash  purchases ;  it  originally  had 
the  significance  of  a  friendly  act.  "  Palit "  is  the  word  for  an  out-and-out  purchase 
for  cash.  The  relationship  between  the  seller  and  the  buyer  may  thus  be  deter- 
mined. While  these  distinctions  are  most  marked  in  the  mountains,  traces  of 
them  may  be  seen  among  the  Christian  population. 

1  From  the  economic  report  of  H.  E.  Stanton. 


EXCHANGE  427 

so  used.  In  addition  to  its  value  rice  is  also  portable,  is  not 
easily  destroyed,  and  can  be  divided.  These  are  essential 
features  of  money,  and  are  possessed  by  metals  in  the  highest 
degree.^ 

When  the  Americans  took  over  the  government  of  the 
Philippines,  two  currencies  were  in  existence,  the  Mexican 
silver  dollar  and  the  Spanish-Filipino  peso  and  fractional 
coins.  The  value  of  these  depended  on  the  silver  in  them. 
The  coinage  of  Europe  and  the  United  States  is  based  on 
gold ;  since  the  relative  value  of  silver  and  gold  is  constantly 
changing,  the  value  of  Mexican  silver  in  United  States  currency 
fluctuated  greatly.  When  silver  was  cheap,  it  took  P2.66 
to  equal  |1  in  gold ;  when  silver  was  dear,  it  took  only 
Pl.98. 

The  differences  in  exchange  from  day  to  day  were  detri- 
mental to  trade,  and  a  new  Philippine  currency  based  on 
gold  was  therefore  coined.  The  unit  of  value  in  this  currency 
is  a  theoretical  gold  peso  consisting  of  12.8  grains  of  gold 
nine  tenths  fine.  This  is  half  the  amount  in  the  theoretical 
gold  dollar  of  the  United  States  (no  gold  dollar  is  coined). 
The  Philippine  peso  is  silver,  and  the  value  of  the  metal  in 
it  has  usually  been  less  than  the  face  value  of  the  coin.  The 
full  face  value  is  guaranteed,  however,  by  the  gold-standard 
fund,  a  reserve  of  more  than  $7,500,000  kept  by  the  govern- 
ment for  that  purpose.  The  Philippine  peso  should  therefore 
maintain  a  constant  exchange  value  of  $0.50  gold.^ 

1  Care  must  be  taken  to  distinguish  the  mere  bartering  of  rice  for  other 
products  from  its  use  as  money.  As  money,  it  serves  as  a  medium  of  exchange, 
a  measure  of  value,  and  a  standard  of  deferred  payment.  If  rice  is  ex- 
changed for  another  product,  the  value  of  both  being  first  reckoned  in  pesos, 
the  exchange  is  merely  barter.  When  rice  acts  as  money,  it  is  not  only 
readily  received  in  exchange  for  goods  and  given  in  exchange  for  other 
goods,  but  the  value  of  other  things,  such  as  pigs,  is  reckoned  in  it,  and 
debts  are  contracted  in  its  terms  and  are  paid  with  it. 

2  A  few  years  ago  the  value  of  silver  began  to  rise.  The  amount  of  silver 
in  a  Philippine  peso  has  at  tvpo  periods  been  worth  more  than  $0.60,  and 
each  time  people  began  shipping  pesos  and  fractional  currency  to  China.  To 
stop  this,  the  currency  was  recoined  ;  the  size  of  the  coin  or  the  amount  of 
silver  in  it  was  made  smaller. 


428  ECONOMIC  CONDITIONS 

Philippine  bills  are  silver  certificates  issued  either  by  the 
Treasurer  of  the  Philippmes,  upon  actual  silver  or  gold  coinage 
deposited  in  the  Treasury,  or  by  the  banks.  In  1919  about 
Pi 00,000,000  in  bills  of  ?2  or  more  were  in  circulation, 
and  F27,000,000  in  peso  bills,  silver,  and  minor  coins.  The 
circulation  per  capita  was  about  P^IS,  an  increase  from  about 
P5  in  1909.  In  the  United  States,  on  the  first  day  of  No- 
vember, 1919,  the  amount  of  money  in  circulation  per  capita 
was  $54.63. 

Credit,  Interest,  and  Banking 

The  amount  of  money  necessary  for  the  commercial  needs 
of  a  country  depends  on  (1)  the  amount  used  as  a  medium 
of  exchange ;  (2)  the  amount  held  as  a  cash  reserve  by 
individuals  to  insure  solvency ;  (3)  the  amount  of  credit 
given,  and  credit  instruments  (checks,  notes,  and  the  like) 
used. 

Professor  Hadley  ^  gives  two  distinct  cases  in  which  the 
use  of  little  money  and  much  credit  makes  itself  felt: 

In  very  poor  communities,  where  the  obvious  needs  for  consumption 
are  great,  money  in  the  cash  drawer  seems  an  unnecessary  hixury. 
People  are  apt  to  spend  all  they  have,  and  trust  to  getting  more  when 
more  is  needed.  In  this  way  they  overreach  themselves.  They  leave 
too  little  for  effective  use  as  a  medium  of  exchange.  By  spending  every 
cent  they  possess,  they  hamper  production  and  exchange  by  constantly 
keeping  their  cash  reserves  at  too  low  a  figure ;  somewhat  as  the 
improvident  operative,  who  spends  every  dollar  before  he  has  earned  it, 
keeps  himself  constantly  in  the  power  of  credit  stores  which  charge 
him  an  unfairly  high  rate  for  his  accommodation.  In  a  community  of 
this  kind  we  find  an  inadequate  supply  of  money,  a  very  low  level 
of  prices  for  cash,  a  much  higher  level  of  credit  prices,  and  a  commercial 
system  so  uncertain  and  cumbersome  as  to  prevent  people  from  serving 
one  another  most  effectively  and  from  selling  their  products  in  outside 
markets  at  the  best  advantage. 

Another  cause  of  scant  money  supply  is  exemplified  in  communities 
of  active  producers.    Such  people  spend  their  money,  not  for  immediate 

1  Hadley's  "Economics." 


EXCHANGE  429 

personal  consumption,  but  for  various  forms  of  capital  which  will  tend 
to  increase  their  wealth  in  the  future.  It  is  not  because  they  are  poor 
that  they  keep  themselves  scantily  supplied  with  money,  but  because 
they  hope  to  be  rich  by  means  of  its  investment.  Where  farms,  railroads, 
factories,  and  other  forms  of  productive  enterprise  seem  to  insure  their 
owners  a  return  of  ten  per  cent,  the  temptation  to  use  too  much  money 
in  purchasing  means  of  production  and  leave  too  little  to  serve  as  a 
medium  of  exchange  is  at  times  quite  overwhelming.  In  such  com- 
munities there  is  always  an  active  attempt  to  develop  a  credit  system 
which  shall  serve  the  place  of  money. 

The  first  proposition  is  applicable  to  most  parts  of  the 
Philippines,  since  there  is  found  here  a  great  deal  of  borrow- 
ing and  extension  of  credit  for  consumption  rather  than  for 
production.  In  retail  trade  the  "  vale,"  or  promise-to-pay 
system,  is  predominant,  and  the  results  are  exorbitant  prices. 
Money  lenders,  buyers,  and  storekeepers  lend  money  or  advance 
products  on  promise  of  repayment  in  tobacco,  abaca,  sugar, 
copra,  rice,  or  other  products  at  prices  much  below  their  market 
value.  Such  transactions  net  the  lender  from  twenty-five  to  a 
hundred  per  cent  in  interest ;  the  borrower  is  often  as  much  in 
the  power  of  the  lender  as  in  the  kasama  system  of  land  tenure. 

Even  where  tangible  security  is  given,  the  rates  of  interest 
are  high.  The  pawning  of  jewelry  (in  which  form  much  of 
the  surplus  wealth  of  the  Filipinos  has  been  kept)  is  a  com- 
mon way  of  securing  credit.  Even  where  mortgages  are  given 
on  land,  crops,  animals,  and  other  properties,  the  rates,  in  all 
but  the  most  advanced  commercial  communities,  have  been 
from  twenty-five  to  fifty  per  cent  on  yearly  loans,  and  as  much 
as  a  hundred  per  cent  on  short-time  loans  in  small  amounts. 
In  Manila,  where  a  good  banking  and  credit  system  exists, 
loans  on  real  property  bear  eight  per  cent  annually. 

Interest  is  a  legitimate  thing.  Capital  is  productive,  and 
its  share  in  production  is  interest.  No  established  agricultural 
activity  in  the  Philippines  can  yield  twenty-five  per  cent  (much 
less  a  hundred  per  cent)  on  the  capital  invested  and  provide 
a  just  share  for  labor,  rent,  and  the  profits  of  the  manager. 
Since  much  of  the  money  borrowed  and  the  credit  extended 


430  ECONOMIC  CONDITIONS 

in  the  Philippines  have  to  do  with  consumption  (fiestas, 
tiding  over  the  lack  of  food,  and  the  like)  it  is  well  to  con- 
sider some  of  the  legitimate  purposes  for  which  capital  may 
be  borrowed: 

1.  The  merchant  may  borrow  on  goods  which  he  has  for- 
warded, but  on  which  he  has  not  yet  received  payment;  or 
on  goods  for  which  he  has  paid,  or  for  which  he  wishes  to  pay, 
but  which  are  in  transit  or  in  stock.  The  action  in  both  cases 
is  in  anticipation  of  selling  the  goods  for  the  purpose  of  buying 
more  goods.  Acceptances  are  now  one  of  the  most  important 
types  of  paper  in  business  credit. 

2.  The  manufacturer  may  borrow  to  improve  his  plant ;  for 
instance,  a  sugar  mill. 

3.  The  agriculturalist  may  borrow  to  purchase  more  imple- 
ments and  animals,  to  extend  his  holdings  or  improve  his  land, 
to  purchase  seed,  and  to  plant  and  harvest  his  crop.  He  may 
borrow  on  his  crop  either  before  or  after  it  is  harvested,  to 
hold  it  for  a^  higher  price  and  at  the  same  time  have  funds 
with  which  to  cultivate  his  land  again.  In  these  instances 
wealth  is  borrowed  for  the  purpose  of  producing  more  wealth, 
and  earns  interest. 

Credit  has  been  difficult  to  obtain,  and  interest  rates  are 
high  in  the  Philippines  for  the  following  reasons :     . 

1.  The  amount  of  capital  here  is  not  great. 

2.  Much  wealth  is  borrowed  for  consumption  rather  than 
for  production. 

3.  Money  lenders  take  advantage  of  the  ignorance  and  the 
antipathy  of  the  borrowers. 

4.  The  lack  of  clear  title  to  lands,  the  chief  form  of  wealth 
in  the  Philippines,  prevents  land  from  being  good  security 
for  loans. 

5.  The  lack  of  a  banking  and  credit  system  results  in  hoard- 
ing wealth  instead  of  using  it  to  finance  productive  enterprises. 

The  first  four  considerations  have  already  been  discussed. 
Since  the  merchant  stands  between  the  producer  and  the  con- 
sumer, and  money  between  the  seller  and  the  buyer,  so  banks 


EXCHANGE  431 

stand  between  the  lender  and  the  borrower.     The  moneys 
which  are  reserved  by  banks  are  of  two  kinds: 

1.  Those  given  for  safe-keeping  for  a  long  time,  and  for 
which  the  bank  pays  interest  (savings  banks). 

2.  Surplus  moneys  used  to  carry  on  business  and  to  secure 
solvency.  These  are  deposited  and  withdrawn  at  frequent 
intervals  by  individual  owners,  but  remain  at  a  fairly  steady 
level  in  the  bank  (commercial  banking). 

In  this  way  much  surplus  wealth  of  the  community  comes 
under  the  control  of  the  banks,  and  is  utilizable  for  the  basis 
of  a  credit  system.  The  bank  borrows  it  from  many  people, 
combines  it,  and  in  turn  lends  a  portion  of  it  to  producers 
on  security. 

Up  to  the  last  few  years  the  banks  of  the  Philippines  were 
to  be  found  in  the  ports  of  entry,  and  were  doing  a  business 
connected  only  with  the  export  and  import  trade.  The  great 
productive  agricultural  districts  were,  and  still  are  to  a  great 
extent,  without  banking  facilities  of  a  legitimate  kind.  The 
government  has  taken  the  lead  in  the  extension  of  banking  by 
founding  postal  savings  banks  and  the  Philippine  National 
Bank. 

As  yet,  however,  the  Philippines  have  no  adequate  banking 
system.    Such  a  system  would  include  the  present  postal  sav- 
ings bank  in  every  municipality,  and  a  commercial  savings 
bank  in  each  important  capital.    These  would  take  care  of 
small  savings.    The  banks  of  Manila  and  their  branches  at 
Cebu,  Iloilo,  and  Zamboanga  are  adequate  to  handle  the  export 
banking  business  of  the  Islands.    The  domestic  banking  sys- 
tem is  far  from  adequate.    Loans  to  agriculturists  are  practi-  i 
cally  confined  to  the  Philippine  National  Bank  and  the  Bank  ' 
of  the  Philippine  Islands,  and  most  of  them  are  large  loans  j 
negotiated  through  Manila.    There  should  be  in  each  impor- 
tant provincial  capital  and  agricultural  center  a  branch  of  the 
Philippine  National  Bank,  or  an  allied  bank  which  could  re- 
ceive commercial  deposits  and  make  loans  to  local  agricultur- 
ists and  merchants.    Such  loans  would  necessarily  have  to  be 


432  ECONOMIC  CONDITIONS 

weU  protected  as  to  titles  and  the  value  of  securities.  They 
could  not  be  granted  to  many  small  farmers  because  of  the 
lack  of  land  titles.  However,  this  could  be  arranged  through 
rural  credit  societies.  The  bank  might  lend  to  the  society  on 
the  legitimate  banking  security  of  several  members,  and  the 
society  could  in  turn  lend  to  its  members  on  personal  security. 
The  ?1,000,000  appropriated  by  Act  Number  2818  is  to  finance 
the  breaking  and  cultivating  of  new  rice  and  corn  land.  This 
amount  should  be  increased  several  fold  to  provide  capital  for 
Philippine  agriculturists,  so  that  crops  may  be  planted,  har- 
vested, and  sold  without  the  present  difficulties  of  securing 
funds  and  the  present  loss  from  high  rates  of  interest. 

India  has  more  than  seventeen  hundred  credit  societies, 
doing  an  annual  business  of  £8,000,000  (P80,000,000),  with 
more  than  two  hundred  central  banks  from  which  these  soci- 
eties can  secure  lend  of  working  capital ;  above  these  central 
banks  are  five  apex  banks  which  lend  working  capital  to  them. 
This  system  was  not  perfected  in  the  first  five  or  ten  years ; 
it  grew  with  experience. 

Such  a  system  in  the  Philippines  would  result  in  great 
expansion  in  agriculture. 

Peige 

Theoretically  price  is  determined  by  demand  and  supply. 

Great  demand  tends  to  increase  the  price  of  an  article,  and 

small  demand  to  lower  it.  Small  supply  tends  to  increase  price, 

and  large  supply  to  lower  it.    This  law  is  well  illustrated  by 

the  small  bargaining  carried  on  in  the  Philippines.   The  seller 

places  his  first  quotation  above  what  he  expects  to  get;  the 

purchaser  begins  with  a  figure  lower  than  he  is  willing  to  give. 

.The  one  lowers,  the  other  raises  his  offer  until  the  price  is 

[determined.     Just  after  harvest,  when  rice  is  abundant,  the 

;  price  is  cheap ;  at  planting,  when  the  demand  is  great  and 

•the  supply  limited,  the  price  rises.    In  1909  the  production  of 

radishes  in  Pasig  was  large,  and  the  price  became  low.    The 

next  year  few  radishes  were  planted,  and  prices  advanced. 


EXCHANGE  433 

In  Laoag  the  occupation  of  silversmithing  was  overcrowded 
until  many  smiths  went  to  the  Cagayan  Valley,  when  the 
remuneration  of  those  remaining  was  increased.  Copra  now 
offers  an  example  of  an  article  of  which  the  increased  supply 
has  not  kept  pace  with  the  demand,  so  that  its  price  has 
steadily  risen. 

The  price  of  indigo  is  relatively  low  because  of  the  compe- 
tition of  large  supplies  of  cheaper  coal-tar  colors.  The  discus- 
sion of  the  price  of  abaca  fiber  in  Chapter  V  offers  an  excellent 
example  of  the  adjustment  of  price  by  supply  and  demand.  If 
the  price  of  an  article  rises  considerably  above  the  cost  of  pro- 
duction, the  result  is  a  large  output  in  anticipation  of  large 
profits  ;  but  the  supply  being  increased  above  the  demand,  the 
price  falls  until  increase  in  the  demand  thus  created  absorbs 
the  augmented  supply.  In  turn,  the  lower  price  discourages 
production,  and  the  price  again  rises  on  account  of  smaller 
supply.  At  any  given  time  the  price  of  an  article  is  determined 
by  demand  and  supply ;  in  the  long  run  the  price  approaches 
the  cost  of  the  article  plus  a  reasonable  profit. 

The  nearer  the  approach  to  free  competition,  the  more 
readily  do  demand  and  supply  adjust  themselves.  Ignorance, 
custom,  and  monopoly  tend  to  prevent  free  competition.  The 
high  rates  of  interest  charged  in  the  Philippines  are  not  only 
the  result  of  great  demand  in  comparison  with  the  available 
supply  of  capital,  but  are  the  result  of  the  ignorance  of  the 
people,  who  are  taken  advantage  of  by  the  lenders.  Immense 
profits  were  once  made  on  articles  traded  to  the  wild  tribes. 
In  selling  to  persons  of  wealth  it  is  customary  to  charge  high 
prices.  In  some  parts  of  the  Islands  the  law  of  supply  and 
demand  does  not  seem  to  hold  good,  and  prices  are  fixed  by 
tradition.  Extraordinarily  high  prices  offered  do  not  seem  to 
stimulate  production. 

An  effective  combination  of  sellers  or  buyers  is  a  monopoly. 
Prices  are  set  by  such  a  combination.  In  the  old  government 
monopoly  of  tobacco  the  buying  of  tobacco  was  fixed  by  the 
officials.    As  explained  in  Chapter  V,  it  is  sometimes  thought 


434  ECONOMIC  CONDITIONS 

that  the  low  prices  paid  for  abaca  have  been  the  result  of  a 
combination  of  buyers.  At  one  time  a  monopoly  of  transpor- 
tation existed  in  the  Philippines,  particularly  in  the  abaca 
regions.  A  farmer  having  brought  his  produce  to  the  coast 
had  either  to  sell  it  at  a  low  price  to  the  representatives  of 
the  steamships,  or  to  keep  it,  as  no  other  transportation  could 
be  had  to  Manila.  In  1903,  and  again  in  1911-1912,  shortage 
in  the  crop  caused  large  importations  of  rice.  A  few  merchants 
got  control  of  the  supply,  and  advanced  the  price  far  above 
the  point  where  supply  and  demand  would  have  placed  it. 
This  monopoly  was  broken  by  the  government,  which  imported 
rice  and  sold  it  at  a  legitimate  profit.  On  the  other  hand,  in 
1919  the  government  fixed  the  highest  prices  at  which  rice 
could  be  sold,  and  later  seized  the  whole  commercial  supply 
of  rice  and  corn,  establishing  a  monopoly  of  the  entire  stock, 
to  insure  a  sufficient  supply  to  the  people  at  a  reasonable  price. 
The  government  monopolies  of  tobacco  and  rice  were  fiscal 
monopolies^  the  one  for  the  purpose  of  raising  revenue,  the 
other  for  political  purposes.  The  monopolies  of  the  rice 
merchants  and  the  hemp  dealers  were  commercial  monopolies. 
The  Philippines  have  a  natural  monopoly  of  abaca. 

SUGGESTIONS  FOR  REVIEW  AND  ORIGINAL  WORK 
Suggestions  based  on  the  Text 

1.  In  general,  of  what  does  foreign  commerce  in  the  tropics  con- 
sist ?    2.  Illustrate  your  answer  by  examples  from  Philippine  trade. 

3.  Explain  by  a  chart  the  four  stages  in  the  increase  of  the 
Philippine  export  trade.  4.  Mention  some  future  events  that 
might  increase  or  decrease  this  trade. 

5.  Explain  the  meaning  of  the  expression  "  balance  of  trade." 
6.  Give  some  of  the  reasons  why  a  country  exports  more  than  it 
imports.  7.  Why  it  imports  more  than  it  exports.  8.  What  is  a 
favorable  balance  and  an  unfavorable  balance  of  trade  ?  9.  Ex- 
plain why  an  unfavorable  balance  of  trade  is  really  favorable  to 
some  countries.     10.  Outline  the  history  of  Philippine  export 


EXCHANGE  436 

trade  with   respect   to   the   balance  of   trade.  "  11.  Should   the 
balance  of  trade  be  favorable  or  unfavorable  in  the  long  run  ? 

12.  The  prosperity  of  the  United  States  has,  in  general,  de- 
pended on  its  crops.  Now  it  also  depends  on  the  demand  for  its 
manufactures.  Explain.  13.  On  what  does  the  prosperity  of  the 
Philippines  depend  ? 

14.  Make  a  chart  showing  the  trade  between  the  Philippines 
and  the  United  States,  and  explain  the  growth  of  trade. 

15.  Explain  how  improvement  in  transportation  increases  the 
trade  of  any  region. 

16.  Locate  ten  centers  of  transportation  in  the  Philippines  and 
the  Orient,  and  explain  in  detail  on  what  circumstances  their 
importance  in  commerce  depends. 

17.  In  connection  with  making  Manila  a  center  of  transporta- 
tion and  transshipment,  it  is  proposed  to  create  a  Free  Port  Area 
on  the  Manila  waterfront.  Explain  why  this  should  be  done,  how 
it  could  be  accomplished,  and  the  results  that  might  be  expected. 

18.  An  interesting  point  is  brought  out  in  a  recent  report  of 
the  Whangpoo  Conservancy  Board  (Shanghai,  1918).  In  the 
report  it  is  stated  that  modern  devices  will  be  used  for  unloading 
ships  in  Shanghai  even  if  in  terms  of  money  it  may  be  cheaper 
to  use  coolies.  The  reason  is  that  the  amount  oJ^  capital  repre- 
sented by  ships  and  docking  facilities  is  great  enough  to  make 
speed  the  first  consideration ;  the  coolies  on  low  wages  will  not 
be  employed  because  it  takes  them  too  long  to  do  the  work. 
Freight  rates  to  Manila  are  high  because  of  the  delays  in  hand- 
ling cargo  there.  Eeview  page  379  and  the  above  quotation,  and 
suggest  a  way  to  remedy  this  condition. 

19.  The  Chinese  are  the  merchants  of  the  Philippines.  Reasons 
for  their  success.  20.  The  growth  of  the  commercial  spirit  among 
the  Filipinos.  21.  The  importance  of  merchants  to  production. 
22.  The  wandering  traders  of  the  Philippines. 

23.  Propose  some  more  economic  system  for  the  gathering  of 
the  Philippine  products  and  their  marketing  than  that  now  in  use. 

24.  How  commerce  and  industry  were  hampered  by  the  currency 
in  use  before  1903. 

25.  Read  page  384,  and  explain  the  meaning  of  the  following 
quotation:  "The  total  resources  of  the  commercial  banks  of  a 
country  are  a  part  of  the  circulating  medium  rather  than  a  part 


436  ECONOMIC  CONDITIONS 

of  the  capital  of  a  country.  The  distinction  cannot  of  course  be 
sharply  drawn.  It  is  a  question  how  much  savings  are  represented 
in  total  resources." 

26.  On  page  97  a  scheme  for  anticipating  market  demands  for 
abaca  is  explained.  It  includes  the  purchase  and  storage  of  hemp 
against  probable  change  in  the  market.  Explain  how  the  banks 
may  be  of  assistance  in  this  project. 

27.  You  have  a  crop  of  sugar  cane  valued  at  P  100,000.  For 
labor,  machinery,  animals,  sacks,  materials,  transportation,  and 
other  expenses  connected  with  the  production  of  sugar  from  your 
cane  you  require  P  25,000.  You  have  a  Torrens  title  to  the  land. 
How  might  you  secure  the  money  ?  28.  How  if  you  had  no 
Torrens  title  ? 

29.  Suppose  you  wish  to  put  some  modern  machinery  on  the 
land,  how  could  you  secure  the  money  ? 

30.  Suppose  your  sugar  is  in  the  warehouse  in  Iloilo  waiting  a 
turn  in  the  market  or  for  shipping  space  to  become  available. 
You  need  another  P 25,000  to  prepare  your  land  and  plant  it  and 
make  certain  improvements.    How  might  you  secure  the  money  ? 

31.  The  forms  above  are  legitimate  methods  of  banking  on 
agricultural  security.  Explain  some  others  that  may  occur  to  you. 
32.  If  possible,  secure  descriptions  of  actual  banking  operations 
in  your  locality  and  classify  them.  33.  Explain  why  an  importer 
needs  to  borrow  money. 

34.  Differentiate  between  borrowing  for  consumption  and  bor- 
rowing for  production,  by  giving  examples.  35.  Personal  security 
as  a  factor  in  banking. 

36.  The  difference  between  the  objects  and  methods  of  a 
savings  bank  and  those  of  a  commercial  bank. 

37.  Prepare  a  scheme  of  banking  which  would  meet  the  needs 
of  the  Philippines.  38.  Explain  how  it  would  help  in  the  develop- 
ment of  commerce  and  industry.  39.  Outline  the  difficulties  of 
establishing  such  a  banking  system. 

40.  On  what  do  rates  of  interest  depend  ?  41.  Explain  some 
of  the  conditions  that  have  made  rates  of  interest  high  in  the 
Philippines.    42.  What  changes  should  reduce  them  ? 

43.  Why  has  the  volume  of  the  importation  of  rice  into  the 
Philippines  no  relation  to  the  price  of  rice  ?  44.  Prove  that  it 
has  none. 


EXCHANGE  437 

45.  Explain  why  the  United  States  is  the  chief  user  of  agave 
fibers.  Yucatan,  in  Mexico,  produces  most  of  the  world's  supply. 
It  took  advantage  of  this  fact  and  established  a  monopoly  of  the 
growers,  which  arbitrarily  increased  the  price  several  fold.  Ex- 
plain how  this  affected  the  price  and  production  of  maguey  in  the 
Philippines.  46.  Do  you  think  the  price  set  by  the  monopoly  in 
Yucatan  could  be  continued  ?   Explain. 

Suggestions  for  the  Study  of  Local  Conditions 

1.  Dependence  on  commerce.  2.  Transportation  facilities. 
3.  Results  of  further  improvements.  4.  Transportation  centers 
and  markets.  5.  Merchants.  6.  Wandering  traders.  7.  Forms  of 
barter.    8.  Examples  of  credit,  interest,  and  banking. 

Suggestions  for  Reports  from  References 

1.  Secure  the  necessary  data  from  the  latest  annual  report  of 
the  Collector  of  Customs,,  and  bring  Charts  XXXVI,  XXXVII, 
XXXIX,  XL,  XLI,  XLII,  XLIII,  XLIV,  down  to  the  present. 
2.  Comment  on  these  new  figures. 

3.  From  the  latest  annual  report  of  the  Treasurer  of  the  Phil- 
ippine Islands  make  a  chart  of  the  total  bank  loans,  discounts,  and 
overdrafts.  4.  Compare  this  with  Chart  XXXVI,  with  respect  to 
its  relation  to  the  total  foreign  trade. 

5.  A  comparison  of  the  foreign  trade  of  the  Philippines  and 
the  foreign  trade  of  the  United  States  ;  Cuba ;  Siam  ;  the  Dutch 
East  Indies  ;  Japan  ;  China ;  Great  Britain  ;  India. 

6.  The  tariff  laws  of  the  United  States  which  give  the  Philip- 
pines a  preferred  market,  and  the  tariff  laws  of  the  Philippines 
which  give  the  United  States  a  preferred  market. 

7.  The  foreign  commerce  of  the  United  States  and  chances 
for  increase  in  the  commerce  between  the  United  States  and  the 
Philippines.    (Brigham,  pages  271-286.) 

8.  The  commerce  of  the  United  States  with  her  colonies  and 
territories.  (Brigham,  pages  276-277,  and  latest  reports  of  the 
trade  of  the  United  States.) 

9.  The  trade  between  Great  Britain  and  the  Philippines. 
10.  Great  Britain  and  China.    11.  Great  Britain  and  Australia. 


438  ECONOMIC  CONDITIONS 

12.  The  commercial  and  industrial  development  of  Japan,  and 
the  increasing  trade  between  Japan  and  the  Philippines. 

13.  The  roads,  railroads,  and  waterways  of  the  leading  coun- 
tries of  the  world.  (Bishop  and  Keller,  and  other  commercial 
geographies.) 

14.  The  canals  of  the  world  in  relation  to  commerce.  (Bishop 
and  Keller,  and  other  commercial  geographies.) 

15.  Land  transportation  in  the  Philippines.  ("  The  Craftsman," 
Vol.  Ill,  page  221.)  16.  Water  transportation  in  the  Philippines. 
17.  AVater  transportation  in  Manila.  ("  The  Craftsman,"  Vol.  Ill, 
page  97.) 

18.  The  history  of  transportation  in  the  United  States. 
(Bishop  and  Keller.) 

19.  The  public  ownership  of  railroads  in  the  Philippines. 
20.  How  it  has  been  provided  for.  21.  How  the  railroads  now 
controlled  by  the  government  are  administered. 

22.  The  trade  of  Singapore,  Hongkong,  and  Shanghai  compared 
with  that  of  Manila. 

23.  How  the  currency  of  1903  was  coined.  24.  The  causes 
which  brought  about  the  recoinage.  25.  Philippine  silver  cur- 
rency, and  how  the  recoinage  was  carried  out.  26.  The  Philii> 
pine  National  Bank  notes  of  20  centavos,  50  centavos,  and  Pi 
of  1917. 

27.  The  silver-certificate-reserve  account  and  the  gold-standard 
fund.    (Annual  report  of  the  Treasurer  of  the  Philippine  Islands.) 

28.  The  bank  notes  of  the  Bank  of  the  Philij^pine  Islands  and 
of  the  Philippine  National  Bank. 

29.  The  circulation  of  money  is  often  taken  as  the  index  of  the 
prosperity  and  domestic  commerce  of  a  country.  In  1917  the 
circulation  per  capita  of  the  Philippines  was  about  Pl2.  Compare 
this  with  the  circulation  of  other  countries. 

30.  From  the  annual  report  of  the  Treasurer  of  the  Philippines 
prepare  a  chart  showing  the  total  annual  circulation  since  1906. 
31.  Interpret  this  historically  as  a  reflection  of  the  domestic 
commerce  of  the  Philippines.  32.  Compare  it  with  the  export 
commerce. 

33.  From  the  annual  report  of  the  Treasurer  of  the  Philippines 
prepare  a  chart  showing  the  percentage  of  silver  certificates  and 
bank  notes  of  P2  or  more  to  the  total  circulation.  34.  Explain 
how  this  represents  increased  purchasing  power. 


EXCHANGE  439 

35.  Explain  the  usury  law  of  the  Philippines.  If  possible 
secure  a  copy  of  the  court  records  of  a  case  tried  under  this  law. 

36.  On  what  sort  of  security  do  bankers  ordinarily  make  loans  ? 
37.  What  forms  of  security  may  be  accepted  by  the  National 
Bank  of  the  Philippines  ?  38.  Why  did  the  old  Agricultural  Bank 
of  the  Philippines  fall  short  of  meeting  the  needs  of  the  country  ? 
39.  Define  the  following  terms :  discount,  deposit,  issue,  loan, 
overdraft.  40.  Describe  the  method  of  making  a  deposit  in  a 
postal  savings  bank.     41.  How  can   you  make  a  withdrawal  ? 

42.  Describe  the  method  of  establishing  a  checking  account  in  a 
bank ;    a  savings  account ;    of  obtaining  a  certificate  of  deposit. 

43.  Explain  the  difference  between  these  two  accounts.  44.  Of 
what  assistance  is  the  checking  account  in  promoting  exchange  ? 
Suppose  you  were  saving  PlO  a  month;  how  would  you  handle 
your  savings  until  they  reached  the  sum  of  PlOOO?  45.  Mention 
various  approved  ways  of  investing  PlOOO. 

46.  Why  government  supervision  of  banks  is  necessary,  and 
how  it  is  effected  in  the  Philippines. 

47.  The  regulations  governing  the  formation  of  rural  credit 
societies.  48.  Their  similarity  to  the  turnuhans.  49.  Have  the 
class  organize  itself  into  a  rural  credit  society. 

50.  Marketing.    (Bishop  and  Keller.) 

51.  Government  and  commerce.  Activities  of  the  government 
of  the  United  States.  52.  Activities  of  the  government  of  the 
Philippines. 

Selections  on  the  Theory  of  Economics  to  be  applied 
TO  THE  Material  in  the  Chapter 

1.  Exchange: 

The  theory  of  exchange.    (Bullock,  pages  97-115.) 

Metallic  money.    (Bullock,  pages  116-122.) 

Credit  and  its  instruments.    (Bullock,  pages  123-128.) 

Laws  of  money.    (Bullock,  pages  128-142.) 

Government  paper  money.    (Bullock,  pages  143-149.) 

Banks  as  institutions  of  credit.    (Bullock,  pages  149-158.) 

Bimetallism.    (Bullock,  pages  158-166.) 

Eailroad  rates.    (Bullock,  pages  208-216.) 

Public  control  of  railroads.    (Bullock,  pages  216-225.) 

International  trade.    (Bullock,  page  226.) 


440  ECONOMIC  CONDITIONS 

2.  The  Philippines  have  a  natural  monopoly  of  hemp.  Why 
can  they  not  sell  abaca  at  any  price  they  desire  ? 

3.  In  1919  the  Philippine  government  created  a  monoxjoly  of 
rice  for  the  purpose  of  controlling  the  distribution  of  the  avail- 
able stock  in  the  Philippines.  Determine  what  the  result  of  the 
prices  fixed  by  the  government  was  (a)  as  to  the  sale  of  rice 
through  the  usual  channels,  (b)  on  the  planting  and  the  produc- 
tion of  rice.  4.  Explain  the  difference  between  such  a  monopoly 
and  a  financial  monopoly. 


CHAPTER  XIX 

SUMMARY  1 
Comparison  with  Former  European  Conditions 

BEFORE  THE  INDUSTRIAL  REVOLUTION 

The  economic  life  of  the  Philippines  is  to-day  predominantly 
national,  with  much  of  the  old  town  economy  and  even  domes- 
tic economy  remaining.  The  Philippines  are  an  agricultural 
country,  with  an  extensive  supplementary  household  manufac- 
ture. In  many  respects  the  conditions  here  resemble  those  of 
England  and  the  Continent  before  the  Industrial  Revolution, 
about  a  hundred  and  fifty  years  ago.^ 

Up  to  this  period  the  general  character  of  industry  was 
much  the  same  as  in  the  Middle  Ages,  or  even  earlier.  Both 
agriculture  and  manufacture  were  still  pursued  by  primitive 
methods;  the  farms  were  small,  and  the  manner  of  cultiva- 
tion unscientific.  Indeed,  in  many  parts  of  England  there 
still  remained  the  old  common  fields,  which  dated  back  to 
the  days  of  the  Norman  Conquest  and  before  it,  and  were 
cultivated  by  peasants  who,  in  many  respects,  had  not  pro- 
gressed much  farther  than  their  villein  ancestors.  ' 

But  the  peculiarity  of  the  tillage  system  was  that  each  vil- 
lager had  his  strips  or  patches  of  land  in  different  parts  of  the 
common  field,  not  in  juxtaposition.  This  custom,  doubtless 
a  relic  of  primitive  times,  was  the  cause  not  only  of  endless 
inconvenience,  but  of  the  slow  development  of  the  science  of 
agriculture.  Disputes  were  constantly  arising  concerning  the 
boundaries  of  the  strips  or  the  method  of  cultivation,  and 

1  Mr.  Herbert  W.  Krieger  assisted  in  gathering  historical  data. 

2  Adapted  from  H.  de  B.  Gibbins's  '^  Economic  and  Industrial  Progress." 

441 


442  ECONOMIC  CONDITIONS 

there  was  no  opportunity  for  anybody  who  was  cleverer  than 
his  fellows  to  follow  out  a  course  of  his  own,  or  to  indulge 
in  agricultural  experiments.  Much  time  was  lost  in  going 
from  one  field  to  another. 

The  domestic  system  was  very  general  in  England  and  on 
the  Continent  before  the  changes  brought  about  by  the  Indus- 
trial Revolution.  Manufactures  were  closely  associated  with 
agriculture,  and  the  craftsmen  spun  and  wove  with  spinning 
wheel  and  loom  in  their  own  houses,  to  which  very  often  a 
small  piece  of  land  was  attached.  At  one  time  the  weaver 
had  furnished  himself  with  warp  and  weft,  worked  it  up,  and 
had  taken  it  to  the  market  himself  for  sale ;  but  by  degrees 
this  system  had  become  too  cumbrous,  and  the  merchants 
themselves  gave  out  the  yarn  to  the  weaver,  or  in  other  cases 
got  together  a  few  looms  in  a  village  and  had  them  worked 
under  their  own  supervision. 

Aside  from  the  many  villages  there  were  towns.  Citizen- 
ship in  these  towns  depended  on  the  possession  of  a  home 
and  land.  People  who  lived  outside  a  town  were  not  granted 
many  of  the  rights  that  its  citizens  possessed. 

The  occupations  of  the  townsmen  were,  of  course,  more 
varied  than  those  of  the  villagers.  In  addition  to  agriculture 
the  townsmen  carried  on  manufactures  and  trade.  Trading 
was  the  principal  thing  that  marked  off  the  life  of  the  towns- 
men as  distinct  from  that  of  the  villagers.  Articles  of  home 
manufacture,  such  as  cloth,  leather,  and  arms,  and  goods  of 
wood,  metal,  and  leather,  were  sold;  likewise  foreign  goods 
brought  to  the  towns  from  the  Continent  were  displayed  for 
sale  in  the  towns. 

The  so-called  market  towns  disposed  of  the  products  of 
manufacture.  The  market  towns  sold  mostly  local  produce. 
Town  fairs,  held  at  stated  periods,  were  important  for  a  time, 
and  merchants  came  from  far  and  near  to  display  their  goods. 
Such  fairs  were  held  at  different  periods,  so  that  merchants 
could  attend  many  of  them. 


SUMMARY  443 


THE  INDUSTRIAL  REVOLUTION 

During  the  eighteenth  century  the  old  common  fields,  with 
their  minute  parcels  of  land,  were  gradually  inclosed  and 
turned  into  the  trim  and  well-ordered  private  fields  of  the 
present  day ;  but  the  old  system  was  hardly  dead  at  the  close 
of  the  eighteenth  century,  although  rapidly  becoming  obsolete. 
The  last  century,  however,  was  remarkable  for  the  growth 
and  progress  made  in  agriculture  and  stock-breeding  by  the 
methods  of  a  few  pioneers.  It  was  the  beginning,  also,  of  the 
age  of  the  capitalist-farmer  and  of  large  holdings  in  place  of 
the  peasant  cultivator  and  his  tiny  patches.  Indeed,  without 
capital  and  large  farms  it  is  difficult  to  see  how  improvement 
could  have  taken  place,  at  least  with  such  rapidity. 

Improvement  in  implements,  the  introduction  of  machinery, 
new  crops  and  rotation  of  crops,  all  received  their  impetus 
during  this  period.  The  first  of  the  great  mechanical  inven- 
tions of  the  Industrial  Revolution  had  to  do  with  spinning  and 
the  weaving  of  cloth.  The  first  successful  invention  was  the 
spinning  jenny,  in  1764,  which  was  able  to  spin  eight  threads 
at  a  time.  Improvements  on  this  machine,  greatly  increasing 
its  spinning  capacity,  were  finally  combined  in  the  mule. 

There  remained  to  be  invented  a  weaving  machine  that 
could  keep  pace  with  the  increased  possibilities  in  spinning. 
This  was  realized  in  the  power  loom.  About  the  same  time 
in  America  an  apparatus  was  invented  that  was  able  to  sepa- 
rate the  cotton  seeds  from  the  fiber  of  the  boll.  Formerly  this 
had  to  be  done  laboriously  by  hand.  Cloth  manufacture  was 
now  free  to  go  forward  unhampered,  were  it  not  for  one  diffi- 
culty ;  the  repeated  inventions  had  so  increased  the  size  of  the 
spinning  machinery  that  it  could  no  longer  be  placed  in  the 
houses  of  the  laborers.  To  work  the  machines  by  hand  power 
was  almost  impossible.  Special  buildings  were  constructed, 
and  horse  power  was  employed.  Later  the  buildings  were 
placed  by  the  side  of  streams,  and  water  power  was  utilized. 


444 


ECONOMIC  CONDITIONS 


The  first  steam  engine  to  be  used  to  supply  power  in  a  cotton 
mill  was  in  1785.  It  had  been  used  earlier  for  other  purposes. 
It  was  now  necessary  for  laborers  to  leave  their  homes  and 
work  in  factories.  They  did  not  possess  enough  means  to  set 
up  their  own  factories,  and  capital  was  supplied  by  successful 
merchants  or  by  the  former  owners  of  large  estates.  Since 
domestic  manufacture  was  no  longer  profitable,  the  displaced 


HUMAN  POWER  :  AN  OIL  PRESS 


hand  workers  gave  up  their  small  landholdings  and  went  to 
the  factory  towns  as  wage  laborers,  or  devoted  themselves 
solely  to  the  cultivation  of  their  small  holdings.  Often  they 
sold  their  land  and  became  agricultural  laborers. 

Wood  in  England  was  well-nigh  exhausted  at  the  opening 
of  the  Industrial  Revolution.  As  a  result,  the  smelting  of  iron 
was  on  the  decline.  The  use  of  coal  in  the  reduction  of  the 
iron  ore  relieved  the  situation  and  stimulated  new  methods 
of  coal  mining.  Its  use  for  making  steam  caused  factories  to 
be  founded  in  the  proximity  of  coal  fields.    Many  canals  were 


1 

g  :  ^          ff'j^'Cur  1  ^- 

me^.  MM 

M  m^'    ^             -  '^  >^  ifiif^*\ 

L ^ ■:■......    -^        „.    .f-- i.-.:_JL^_ m. 

An  Animal-Power  Cane  Crusher 


--■-  ^       ~-~^^^f^^,7.  -try  :M|^B 

P^WHNI 

A  Watek-I'uwek  Cane  LKL^iii-.u 
POWER 


446  ECONOMIC  COKDITIOKS 

built,  and  great  cities  sprang  up  along  them.  Later  the  con- 
struction of  steam  railroads  brought  further  change  in  the 
localization  of  the  great  centers  of  industry.  Cities  that  had 
harbors  were  now  connected  by  railroads  with  the  mines  and 
with  the  regions  of  agriculture  and  the  raising  of  sheep. 

The  period  of  great  inventions  did  not  cease  with  the  years 
immediately  following  the  beginning  of  the  Industrial  Revolu- 
tion, but  have  continued  to  the  present  time.  The  application 
of  electricity  to  industry,  and  the  use  of  fuel  oil  for  power,  are 
achievements  of  the  modern  age.  Invention  after  invention  is 
recorded  annually  in  the  history  of  the  industrially  progres- 
sive nations.  The  elements  have  been  so  completely  mastered 
that  the  poorest  laborer  of  to-day  may  in  many  respects  live 
more  comfortably  and  safely  than  could- the  lord  of  the  manor 
in  medieval  ages. 

Resume  of  Economic  Advance  in  the  Philippines 

The  Philippines  are  now  going  through  an  industrial  revo- 
lution similar  to  the  one  which  took  place  in  England,  except 
that  the  impetus  has  come  from  without,  and  that  the  achieve- 
ments of  other  countries  can  be  taken  for  guides  and  goals. 

At  the  beginning  of  the  seventeenth  century  Manila  had 
come  to  be  the  commercial  center  of  the  Far  East,  and  her  mer- 
chants were  in  control  of  the  commerce  between  the  Orient 
and  Spain  and  the  Western  World.  The  period  of  the  brilliant 
success  of  Spanish  effort  in  the  East  was  brought  to  a  close 
through  the  petty  jealousy  of  the  Spanish  merchants  at  home. 
Only  one  vessel  was  permitted  to  ply  between  Mexico  and 
the  Philippines.  The  freight  charges  on  this  galleon  were 
heavy,  and  served  to  raise  the  price  of  products  to  such  a  degree 
that  an  importer  or  exporter  of  goods  for  the  Mexican  and  Phil- 
ippine trade  could  realize  a  profit  of  several  hundred  per  cent. 

From  the  beginning  of  the  seventeenth  century  Spanish 
dominion  both  in  Europe  and  in  her  colonies  began  to  decline. 
After  the  Mexican  trade  ceased,  the  new  outlet  of  Philippine 
trade  was  Spain  itself.    The  route  was  by  way  of  the  Cape  of 


SUMMARY  44T 

Good  Hope.  Profits  were  now  decreased,  and  trade  became 
more  extensive,  since  it  was  no  longer  a  monopoly.  Some  few 
foreign  business  bouses  began  operations  in  Manila,  but  under 
many  restrictions.  The  wider  market  open  to  Philippine  prod- 
ucts stimulated  the  production  of  Manila  hemp,  sugar,  and 
tobacco  for  export.  In  1837  Manila  became  an  open  port 
for  the  ships  of  foreign  nations.  The  cultivation  of  the  staple 
export  crops  became  still  more  extensive,  and  coffee  and  sev- 
eral minor  crops,  such  as  coconuts,  made  their  appearance.  In 
1855  Iloilo  and  Zamboanga,  and  in  1863  Cebu,  became  ports 
of  entry.  These  concessions  to  foreign  trade  were  accompanied 
by  a  liberalizing  of  the  customs  duties.  The  prices  of  the 
export  crops  had  so  increased  that  it  became  profitable  to  the 
planter  to  introduce  their  cultivation  and  to  purchase  much 
of  the  rice  required  for  the  food  supply. 

The  opening  of  the  Suez  Canal  greatly  stimulated  the  trade  re- 
lations of  the  Philippines  by  shortening  the  distance  between 
Europe  and  the  East,  and  gave  the  Philippine  planters  an  oppor- 
tunity to  compete  with  the  more  favorably  situated  countries. 

The  stagnant  economic  condition  of  the  Philippines  in  the 
last  decade  of  the  nineteenth  century  is  indicated  by  the  dead 
level  of  foreign  trade  which  existed  through  that  period  (see 
Chart  XXXVI).  The  economic  advance  of  the  past  decade 
is  likewise  indicated  by  an  increase  in  foreign  trade  never 
before  approached  in  the  history  of  the  Philippines.  It  has 
been  occasioned  by  the  removal  of  industrial  restrictions,  by 
encouragement  to  the  economic  independence  of  the  individual, 
and  by  the  opening  of  a  market  (the  United  States)  for  ex- 
port products.  Agriculture  has  been  most  affected,  but  manu- 
facture (both  factory  and  household),  forestry,  mining,  and 
commerce  have  also  progressed.  The  industrial  growth  of  the 
Philippines  will  continue,  and  will  be  based  on  the  natural 
resources,  the  supply  of  labor,  and  the  amount  of  available 
capital.  Although  exports  may  fall  off  when  world  conditions 
become  normal,  the  impetus  given  to  Philippine  industries  by 
the  war's  demands  will  have  a  lasting  effect. 


448  ECONOMIC  CONDITIONS 

Present  Economic  Tendencies 

Household  manufacture  dependent  on  agriculture  will  per- 
sist with  the  systems  of  peasant  proprietor  and  share  tenant. 
The  drift  is  toward  commercialism  and  the  commission  system, 
and  the  perfecting  of  old  articles  and  the  introduction  of  new 
wares  for  the  United  States  market. 

The  growth  of  factories  will  occur  in  the  larger  ports  of 
entry.    At  the  present  time  the  Philippines  are  hampered  by 


POWER :  COAL  IN  BARGES,  UNITED  STATES 
From  Brigham's  "Commercial  Geography" 

the  lack  of  coal  or  other  means  of  obtaming  power.  The 
Spaniards  began  to  search  for  gold  when  they  occupied  the 
Islands,  and  later  interested  themselves  in  other  minerals. 
Gold  mining  became  important  after  the  American  occupa- 
tion, but  until  recent  times  was  rather  speculative.  At  pres- 
ent there  are  some  successfully  operated  gold  mines  and 
dredging  properties.  Should  great  finds  be  made  in  any  of  the 
Philippine  mining  regions,  the  resultant  thronging  of  people 
to  the  new  fields  might  settle  certain  sparsely  populated  re- 
gions, just  as  California,  Australia,  and  Alaska  were  settled. 
Although,  so  far  as  value  is  concerned,  gold  is  the  most 


SUMMARY 


449 


important  mineral  now  produced  in  the  Islands,  there  are  de- 
posits of  many  other  minerals,  both  metallic  and  nonmetallic. 
The  production  in  1918  is  noted  in  the  following  table : 


Estimated  Statistics  of  Mineral  Production  in  the 
Philippine  Islands  in  1917 

[Approximations  only] 


Quantity 

Value 

Metallic 
IroTi  metric  tons •    . 

50 

125,000 

2,119,000 

Pesos 
18,00.000 
6,250.00 
2,816,638.37 

Silver  (alloyed  with  gold),  tine  grams     . 
Gold,  fine  grams 

Value  of  metallic 

Nonmetallic 
Coal  metric  tons     ....         .... 

3,200 

14,000 

725,000 

230,000 

26,000 

3,350,000 

2,840,888.37 
80,000.00 

Clay  products,  metric  tons 

liime  metric  tons 

900,000.00 
270,000.00 

Sand  and  gravel,  cubic  meters    .... 
Stone,  cubic  meters 

700,000.00 
350,000.00 
780,000.00 

Mineral  w^aters,  liters 

85,000.00 

Value  of  nonmetallic 

3,165,000.00 

6,005,888.37 

The  Philippines  are  chiefly  an  agricultural  country,  and 
the  development  of  agriculture  must  require  the  principal 
attention  and  effort  of  the  government  and  of  the  people  in 
the  years  to  come.  The  development  of  the  mineral  resources 
and  of  power,  however,  is  not  to  be  neglected.  Act  Num- 
ber 2849  of  the  Philippine  Legislature  created  the  National 
Development  Company.  Its  purpose  is  to  engage  in  com- 
mercial, industrial,  and  other  enterprises.  The  government 
is  to  hold  the  controlling  shares ;  provincial  and  municipal 
governments,  or  the  public,  may  have  the  remaining  shares. 
The  legislature  has  also  created  the  National  Cement  Com- 
pany, the  National  Iron  Company,  the  National  Petroleum 
Company,  and  the  National  Coal  Company.    Material  for  the 


450  ECONOMIC  CONDITIONS 

production  of  cement  is  found  in  the  Philippines,  although 
the  one  factory  here  has  not  yet  been  successful.  Cement  is 
particularly  important  in  the  Philippines,  and  its  production 
here  on  a  cheap  and  extensive  scale  would  be  of  great  assist- 
ance to  industry.  There  are  traces  of  petroleum  in  various 
parts  of  the  Islands,  but  as  yet  little  has  been  done  in  the 
way  of  investigation.  The  National  Coal  Company  is  the 
only  one  of  these  corporations  authorized  by  law  that  was 
actively  producing  in  1919 ;  it  was  operating  in  Mindanao. 
In  addition  private  coal  mines  are  being  developed  in  various 
parts  of  the  Islands.  In  1918  the  total  import  of  coal  into 
the  Islands  was  about  405,000  metric  tons,  valued  at  more 
than  p4,500,000.  Most  of  our  imported  coal  comes  from 
Japan.  The  3000  odd  tons  of  domestic  coal  produced  in 
1917  seem  to  be  trifling.  Somewhat  more  was  produced  in 
1918 ;  the  total  possible  output  in  1919,  even  with  the  devel- 
opment of  the  mines  noted  above,  was  about  20,000  tons.  It 
is  evident,  therefore,  that  there  must  be  a  large  development 
of  coal  mines  in  the  Islands  to  meet  the  demands.  More- 
over, it  is  probable  that  special  methods  of  burning  Philip- 
pine coal  must  be  adopted,  since  the  coal  is  very  soft,  and 
powders  easily. 

Countries  like  Italy,  in  which  coal  is  lacking,  have  been 
able  to  develop  electrical  power.  Japan  is  also  a  country  in 
which  the  water  power  existing  in  the  mountainous  regions 
is  converted  into  electrical  power  and  transmitted  to  indus- 
trial centers.  In  the  Philippines  there  are  possibilities  of 
developing  electrical  power,  especially  in  regions  which  are 
not  greatly  affected  by  dry  seasons,  or  in  which  water  can 
be  stored.  The  table  of  rice  mills  on  page  33  indicates  in 
a  general  way  the  provinces  in  which  water  power  exists. 

In  the  immediate  future  the  factories  needed  will  probably 
be  similar  to  those  already  established  to  produce  goods  for 
domestic  consumption  (such  as  matches,  cigarettes,  and  cottons), 
and  to  work  up  raw  materials  (for  example,  turning  abaca 
into  rope,  copra  into  coconut  oil,  and  tobacco  into  cigars). 


SUMMARY 


451 


In  forestry,  capitalistic  methods  of  large  production  will 
soon  supply  domestic  demands,  and  export  will  follow. 

In  agriculture  the  tendency  to  large  estates  in  certain 
localities  will  probably  be  offset  by  the  general  desire  of  the 
Filipinos  to  become  inde- 
pendent small  farmers.  It 
may  be  that  ultimately  the 
creation  of  educated  profes- 
sional and  artisan  classes  will 
result  in  a  movement  lead- 
ing away  from  the  land,  and 
the  consolidation  of  small 
plots  into  larger  holdings. 
On  large  and  small  holdings 
better  methods  and  machin- 
ery are  gradually  finding 
their  place.  The  agricul- 
tural laborer  is  receiving 
economic  independence  and 
greater  incentive  to  pro- 
duce, and  the  old  forms  of 
bondage  are  breaking  down 
under  education  and  en- 
lightenment. 

Greater  production  is  tak- 
ing place  under  the  impetus 
of  a  profitable  market  in  the 
United  States.^  The  value 
of  that  marl^et  and  the  value 
of  the  Filipino  as  an  agri- 
cultural   laborer    are    being 

recognized  in  increased  capitalistic  agriculture.  Foreign  cap- 
ital, particularly  from  the  United  States,  is  being  invested  in 
large  estates  purchased  from  private  owners  or  leased  from 

1  The  United  States  annually  imports  raw  tropical  products  worth  about 
$1,000,000,000. 


POWER :  BOTACAN  FALLS 


452  ECONOMIC  CONDITIONS 

the  government;  domestic  capital  is  also  increasing.  The 
increased  products  are  being  carried  by  an  improved  system 
of  domestic  transportation ;  better  connections  by  steamers 
are  being  made  with  foreign  countries. 

The  Philippines  are  a  country  of  great  potentialities.  Mod- 
ern methods,  labor  economically  free,  and  sufficient  capital 
are  causing  a  wider  and  better  use  of  the  abundant  natural 
resources  and  a  greater  production  of  wealth. 


Suggestions  for  Review  and  Original  Work 

I.  From  the  latest  "  Statistics  on  Principal  Crops "  of  the 
Philippine  Islands,  Bureau  of  Agriculture,  prepare  a  diagram 
representing  the  total  area  under  cultivation.  2.  Divide  it  into 
sections,  one  representing  the  area  devoted  to  food  crops,  the 
other  the  area  devoted  to  export  crops.  3.  Divide  these  again  into 
sections  representing  the  respective  crops.  4.  Make  a  similar  chart 
representing  the  values  of  the  crops.  5.  Make  a  deduction  from 
these  diagrams  as  to  the  importance  of  various  crops  according  to 
the  area  and  the  value.  For  example,  add  the  areas  devoted  to 
food  crops  and  their  values ;  add  the  areas  and  values  of  export 
crops  also;  compare  these  and  explain  the  relation  of  value  to 
area  on  the  importation  of  rice  into  the  Philippines. 

6.  The  general  future  agricultural  prosperity  of  the  Philippines. 

7.  Which  product  in  your  opinion  has  the  greatest  future, 
abaca,  copra,  tobacco,  or  sugar  ?  8.  Which  has  the  least  chances 
of  greater  prosperity  ?  9.  Have  the  Philippines  such  a  complete 
monopoly  of  abaca  that  they  can  fix  the  price  for  it  ? 

10.  A  comparison  of  the  Philippines  with  England  at  the  time 
of  the  Industrial  Revolution. 

II.  On  what  do  the  present  household  industries  of  the  Philip- 
pines depend  ?    12.  The  future  of  these  industries. 

13.  Will  the  Philippines  ever  be  a  manufacturing  country  ? 

14.  If  the  United  States  should  adopt  free  trade,  or  the  Philip- 
pine products  should  again  have  to  pay  duty  on  entering  the 
United  States,  what  would  be  the  effect  on  Philippine  industry  ? 
15.  Explain  in  detail.  16.  The  present  tendency  with  respect  to 
import  tariffs  in  the  United  States. 


SUMMARY  453 

17.  The  prosperity  of  the  Philippines  depends  largely  on  the 
world's  economic  condition  with  respect  to  the  demand  for  raw 
materials.  Explain  why,  and  give  examples  from  the  history  of 
the  abaca  trade. 

18.  The  revenue  of  the  Philippine  government,  and  how  it 
is  expended. 

19.  The  organization  and  duties  of  the  Bureaus  of  Agriculture, 
of  Internal  Revenue,  of  Forestry,  of  Commerce  and  Industry,  of 
Education,  with  respect  to  the  economic  development  of  the 
Philippines. 

20.  Government  aid  to  manufacturing  enterprises  in  the 
Philippines. 

21.  Government  aid  to  agricultural  enterprises  in  the  Philip- 
pines. 

22.  Government  supervision  and  aid,  and  the  resultant  increase 
in  the  quality  of  hemp,  maguey,  tobacco,  copra,  and  sugar. 

23.  Control  of  public  utilities  exercised  by  the  Philippine 
government. 

24.  Secure  from  the  Provincial  Treasurer  copies  of  the  laws 
and  regulations  governing  (a)  postal  savings  banks,  (I))  the  Phil- 
ippine National  Bank,  (6)  rural  credit  banks  and  societies.  Dis- 
cuss the  activities  of  each  of  these  institutions  in  promoting 
savings  and  in  extending  loans. 

25.  Wages  in  the  Philippines  (from  the  census  of  1918). 

26.  Forms  of  increased  wealth  noted  in  the  community. 

27.  Plans  for  the  economic  improvement  of  the  province. 

28.  A  review  of  Bullock's  "  The  Elements  of  Economics," 
illustrating  the  economic  theory  by  examples  from  economic 
conditions  in  the  Philippines  and  other  countries. 

29.  Bring  in  reports  on  the  following  subjects :  the  industrial 
development  of  the  Philippines  (a)  during  the  Spanish  period, 
{b)  from  1900  to  1909,  (c)  from  1910  to  1914,  {d)  during  the 
World  War,  (e)  since  the  World  War. 

30.  Write  a  paper  or  prepare  a  discussion  on  what  the  World 
War  meant  to  the  economic  development  of  the  Philippines. 

31.  In  the  table  on  page  454  compare  the  figures  of  the 
trade  of  Siam  with  those  of  the  same  period  in  the  trade  of  the 
Philippines. 


454 


ECONOMIC  COI^DITIONS 


Values  of  Imtouts,  Exports,  and  Total  Trade  of  Siam  from 

1909  TO  1918 


Year  em>kd 
Makch  .11 


1909 
1910 
1911 
1912 
1913 
1914 
1915 
1916 
1917 
1918 


Population 


7,999,000 
8,007,000 
8,178,000 
8,266,000 
8,397,000 
8,449,000 
8,542,000 
8,636,000 
8,731,000 
8,827,000 


Imports 

P  56,258,015 
57,580,266 
50,752,485 
53,765,997 
58,866,036 
67,764,387 
58,485,383 
56,358,810 
65,667,519 
72,569,637 


Exports 


P  73,790,156 
75,401,668 
81,039,742 
62,215,925 
60,076,767 
86,223,878 
75,749,963 
79,160,144 
90,814,253 
92,542,026 


Total  Trade 


P  130,048,171 
126,721,704 
131,792,227 
115,981,928 
115,912,805 
153,988,265 
134,235,346 
135,518,954 
156,481,772 
165,111,663 


Note.   The  values  above  are  reduced  from  sterling  (British  currency), 
which  is  equivalent  to  $4.8665,  or  P9.7330. 
Population  for  1918  estimated  only. 


32.  International  competition  for  industrial  and  commercial 
supremacy.    (Keller  and  Bishop.) 


APPENDIX  I 

TABLES  OF  EQUIVALENT  WEIGHTS  AND  MEASURES  ^ 

[Conforming  to  Act  No.  1519  of  the  Philippine  Commission] 

CURRENCY 

PI  Philippine  Currency  =  .^0.50  United  States  Currency 


LENGTHS 


Units 


Inches 
to  milli- 
meters 


25.4001 
50.8001 
76.2002 
101.6002 
127.0003 
152.4003 
177.8004 
203.2004 
228.6005 


Milli- 
meters 

to 
inches 


0.03937 
0.07874 
0.11811 
0.15748 
0.19685 
0.23622 
0.27559 
0.31496 
0.35433 


Inches 
to  centi- 
meters 


2.54001 
5.08001 
7.62002 
10.16002 
12.70003 
15.24003 
17.78004 
20.32004 
22.86005 


Centi- 
meters 

to 
inches 


0.3937 
0.7874 
1.1811 
1.5748 
1.9685 
2.3622 
2.7559 
3.1496 
3.5433 


Feet  to 
meters 


0.304801 
0.609601 
0.914402 
1.219202 
1.524003 
1.828804 
2.133604 
2.438405 
2.743205 


Meters 
to  feet 


3.28083 
6.56167 
9.84250 
13.12333 
16.40117 
19.0a500 
22.96583 
26.24667 
29.52750 


Yards 

to 
meters 


0.914402 
1.828804 
2.743205 
3.657607 
4.572009 
5.48M11 
6.400813 
7.315215 
8.229616 


Meters 

to 
yards 


1.093611 
2.187222 
3.280833 
4  ..374444 
5.468a56 
6.561667 
7.655278 
8.748889 
9.842500 


Miles 
to  kilo- 
meters 


1.60935 
3.21869 
4.82804 
6.43739 
8.04674 
9.65608 
11.26543 
12.87478 
14.48412 


Kilo- 
meters 

to 
miles 


0.62137 
1.24274 
1.8G411 
2.48548 
3.10685 
3.72822 
4.34959 
4.97096 
5.59233 


AREAS 


Square 
inches 

Square 
centi- 

Square 

Square 
deci- 

Square 

Square 

Square 
miles 

Square 
kilo- 

to 

meters 

feet  to 

meters 

yards 

meters 

to 

meters 

Acres 

Hec- 

Units 

square 
centi- 
meters 

to 
square 
inches 

square 
deci- 
meters 

to 

square 

feet 

to 
square 
meters 

to 
square 
yards 

square 
kilo- 
meters 

to 
square 
miles 

to  hec- 
tares 

tares  to 
acres 

1 

6.452 

0.1550 

9.290 

0.10764 

0.836 

1.196 

2..5900 

0.3861 

0.4W7 

2.471 

2 

12.903 

0.3100 

18.581 

0.21528 

1.672 

2.392 

5.1.S00 

0.7722 

0.8094 

4.942 

3 

19.355 

0.4650 

27.871 

0.32292 

2.508 

3.588 

7.7700 

1.1583 

1.2141 

7.413 

4 

25.807 

0.6200 

37.161 

0.43055 

3.344 

4.784 

10.3600 

1.5444 

1.6187 

9.885 

5 

32.258 

0.7750 

46.452 

0.53819 

4.181 

5.980 

12.9500 

1.9305 

2.02M 

12.385 

6 

38.710 

0.9300 

55.742 

0.(M583 

5.017 

7.176 

15.5400 

2.3166 

2.4281 

14.246 

7 

45.161 

1.0&50 

65.032 

0.75347 

5.&53 

8.372 

18.1300 

2.7027 

2.8328 

17.297 

8 

51.613 

1.2400 

74.323 

0.86111 

6.689 

9.568 

20.7200 

3.0888 

3.2.375 

19.768 

9 

58.065 

1.3950 

83.613 

0.96875 

7.525 

10.704 

23.3100 

3.4749 

3.6422 

22.239 

1  By  Dr.  Alvin  J.  Cox,  Bureau  of  Science. 
455 


456 


ECONOMIC  CONDITIONS 


MASSES 


Units 


Avoir- 
dupois 
pounds 
to  kilo- 
grams 


0.45359 
0.90719 
1.36078 
1.81437 
2.26796 
2.72156 
3.17515 
3.62874 
4.08233 


Kilo- 
grams to 
avoir- 
dupois 
pounds 


2.20462 

4.40924 

6.61387 

8.81849 

11.02311 

13.22773 

15.43236 

17.63698 

19.84160 


Quintals 
to  avoir- 
dupois 
pounds 


220.46 

440.92 

661.39 

881.85 

1,102.31 

1,322.77 

1,543.24 

1,763.70 

1,984.16 


Metric 
tons  to 
avoir- 
dupois 
pounds 


2,204.6 

4,409.2 

6,613.9 

8,818.5 

11,023.1 

13,227.7 

15,432.4 

17,637.0 

19,841.6 


Arrobas 
to  kilo- 
grams 


11.500 
23.000 
34.500 
46.000 
57.500 
69.000 
80.500 
92.000 
103.500 


Kilo- 
grams 

to 
arrobas 


0.0870 
0.1739 
0.2609 
0.3478 
0.4348 
0.5217 
0.6087 
0.6956 
0.7826 


Piculs 

(or  pi  cos) 
to  kilo- 
grams 


63.250 
126.500 
189.750 
253.000 
316.250 
379.500 
442.750 
506.000 
569.250 


Kilo- 
grams to 
piculs  (or 

picos) 


0.01581 
0.03162 
0.04743 
0.06324 
0.07906 
0.09487 
0.11068 
0.12()49 
0.14230 


CAPACITIES 


Units 

Gallons 

Liters  to 

Bushels 
to  hecto- 

Hecto- 
liters to 

Gantas 
to 

Liters 
to 

Cavans 
to 

Liters 
to 

liters 

bushels 

liters 

gantas 

liters 

cavans 

1 

3.78543 

0.26417 

0.35239 

2.8377 

3 

0.33 

75 

0.0133 

2 

7.57087 

0.52834 

0.70479 

5.6755 

6 

0.67 

150 

0.0267 

3 

11.35630 

0.79251 

1.05718 

8.5132 

9 

1.00 

225 

0.0400 

4 

15.14174 

1.05668 

1.40957 

11.3510 

12 

1.33 

300 

0.0533 

5 

18.92717 

1.32085 

1.76196 

14.1887 

15 

1.67 

375 

0.0667 

6 

22.71261 

1.58502 

2.11436 

17.0265 

18 

2.00 

450 

0.0800 

7 

26.49804 

1.84919 

2.46675 

19.8642 

21 

2.33 

525 

0.0933 

8 

30.28348 

2.11336 

2.81914 

22.7019 

24 

2.67 

600 

0.1067 

9 

34.06891 

2.37753 

3.17154 

25.5397 

27 

3.00 

675 

0.1200 

APPENDIX  II 

STATISTICAL  TABLES 

TABLE  I.    POPULATION   OF   THE   PHILIPPINE   ISLANDS   BY 
PROVINCES  IN  ORDER  OF  DENSITY 


Pbovincb 


City  of  Manila 

La  Union 

Cebu 

Ilocos  Sur 

Cavite 

Pampanga 

Pangasinan 

Bulacan 

Laguna      

Batangas 

Iloilo 

Bohol 

Rizal 

Albay    

Misamis 

Capiz 

Antique 

Leyte    

Ilocos  Norte 

Tarlac 

Oriental  Negros  .  .  .  . 
Occidental  Negros  .     .     ,     . 

Romblon 

Batanes 

Bataan 

Ambos  Camarines  .... 

Sorsogon 

Nueva  Ecija 

Zambales 

Cagayan    

Samar 

Tayabas 

Mountain 

Abra 

Surigao 

Isabela       

Mindanao  and  Sulu :    Sulu  . 

Lanao    

Zamboanga 

Bukidnon 

Davao 

Agusan 

Cotabato 

Mindoro 

Palawan 

Nueva  Vizcaya 

Philippine  Islands    .     .     . 


Akea  1 

IN 

Square 
Miles 


20 

350 

1,867 

442 

464 

823 

1,944 

1,007 

722 

1,270 

2,040 

1,536 

913 

1,543 

1,030 

1,710 

964 

3,005 

1,293 

1,178 

1,902 

3,125 

497 

74 

480 

2,851 

2,274 

2,069 

1,421 

3,007 

5,234 

4,195 

6,447 

1,475 

2,889 

4,052 

1,082 

2,439 

6.383 

3,871 

7,486 

4,294 

9.620 

3,983 

5,619 

3,530 

114,420 


Population 


1903  2 


Number 


219,928 
137,839 
653,727 
187,411 
134.779 
223.754 
397.902 
223.742 
148,606 
257,715 
410,315 
269,223 
150,923 
240,326 
175,683 
230,721 
134,166 
388,922 
178.995 
135.107 
201,494 
308,272 
52,848 

46,787 
239,405 
164,160 
134,147 
104,549 
156,239 
266,237 
204,739 

95,495 

51.860 
115,112 

76,431 
120.768 

67,899 

65,496 

125.875 

39,582 

35,696 

62,531 

7,635,426 


Per 

square 

mile 


10,996 
217 
337 
398 
218 
258 
334 
191 
236 
215 
202 
178 
206 
135 
47 
132 
118 
129 
135 
112 
108 
98 
92 

87 
73 
71 
62 
49 
31 
50 
48 
36 
44 
16 
15 
78 

15 


1915  » 


Number 


266,246 

148,459 

727,955 

170,877 

157,477 

270,070 

535.025 

251,249 

175,401 

286,643 

454,911 

307,914 

180,527 

292,157 

177,128 

286,927 

159,870 

478,480 

185,446 

167,738 

265,202 

414.113 

66.113 

8,685 

51,267 

293,012 

201,050 

168,026 

110,634 

192,422 

325,232 

254,052 

387,388 

65,170 

117,640 

98.748 

110.548 

79.597 

124.869 

58.150 

109,921 

69.690 

97.661 

63.777 

65.131 

34.665 

.503.271 


Per 

square 

mile 


13,312 

424 

390 

387 

339 

328 

275 

250 

243 

226 

223 

200 

198 

189 

172 

168 

166 

159 

143 

142 

139 

133 

133 

117 

107 

103 

88 

81 

78 

64 

62 

61 

60 

44 

41 

24 

102 

33 

20 

15 

15 

14 

10 

16 

12 

10 

83 


1918* 


Number 


280.460 
156.390 
766.830 
180.000 
165,890 
284,500 
563,600 
264,790 
184,770 
301,950 
479,200 
324.360 
190,170 
307,760 
186,590 
302,250 
168,410 
504,030 
195,350 
176.700 
279,360 
436,230 

69,640 
9,160 

54,000 
308,660 
211,790 
177,000 
116,540 
202,700 
342,600 
267,620 
408,070 

68,650 
123,920 
104.020 
116.450 

83,850 
131,540 

61,260 
115.790 

62.880 
102.870 

67.180 

68,610 

36,520 
10.010.810 » 


Per 

square 

mile 


14,023 

447 

411 

407 

358 

346 

290 

263 

256 

246 

235 

211 

208 

201 

181 

177 

175 

168 

151 

150 

147 

140 

140 

124 

112 

108 

93 

86 

82 

67 

65 

64 

63 

47 

43 

26 

108 

34 

21 

16 

16 

15 

11 

17 

13 

11 

87 


1  Furnished  by  the  Bureau  of  Lands.  *  Census  of  1903. 

'  From  Professor  Beyer's  "Population  of  the  Philippine  Islands  in  1916." 
*  Estimated  on  the  basis  of  Professor  Beyer's  estimated  population  in  1918. 

467 


458 


ECONOMIC  CONDITIONS 


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110,960 

30,001,039 

19,136,989 

7,047,664 

150,346 

9,705,062 

8,426,851 

6,667,656 

3,115.795 

13,019,776 

4,772,756 

29,520 

1,323.645 

1,440,571 

2,429,913 

658,949 

1,561,665 

7,360 

323,139 

447,053 

1,379,272 

89,666 

13,190 
1,315,949 

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00 

....______..___■'■_■■._      _  .  _  .    .11 

United  states 
Hawaii    .     .     . 
Porto  Rico  .     . 
Guam 

United  Kingdom 

Japan     .... 

France   .... 

Germany    .     .     . 

China     .... 

Hongkong  .     .     . 

Spain      .... 

Australia     .     .     . 

French  East  Indies 

British  East  Indies 

Belgium      .     .     . 

Switzerland     .     . 

Italy       .... 

Dutch  East  Indies 

Siara       .... 

Netherlands    .     . 

Austria-Hungary 

Japanese-China   . 

Norway      .     .     . 

Canada  .... 

Denmark    .     .     . 

French  Africa 

British  Africa .     . 

All  other  countries 

3 

^ 

APPENDIX  II 


459 


12; 

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i 

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1? 

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II 

IJII 

mbroideries 
ats     ...     . 
netted  hemp  , 
emp  .     .     .     . 
:aguey    .     .     . 

WWMWSS 

.2 

H 

II 

462 


ECONOMIC  CONDITIONS 


H  CO 


o 

Tj<  X  O  X  CD 

ox        (NXCOOXO              COX 

x«o  coo    1 

00      ic  —1  o>  Oi  ^ 

t- t^         lO  05  i«  X  0  CO               1-1  CO 

coxxc5    1 
q(Nqi* 

Oi 

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©_  00         CO  CO  CO  1-H  t^_  CO                ■*  X 

s 

00         CO*  to  O"  rf  ■*■■ 
rH         Ot^  lOCO  M 

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"5  b.  X  1* 

OS  r- 

(NiOOOXX              t-X 

1-t 

.-H         1>;M  M  lO  CO 

T«*CC 

q  M  ■*  Ttl   rH  CO                   (N  lO 

•-T              (N 

rHrH                           ■^" 

O  iM  «*  X  (N  00  00 

rf 

CO  CO 

Xt^rHOSXO           t^COt^ 

0  M  ■*  X 

— 1  CO  !N  -H  03  r^  t^ 

O 

IC  tH 

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o 

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rt  rH  (N  (N  00  O  CO 

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lOiOTHCDOSt^         TJIOSX 

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CO 

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CO  (N 

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other  printed 
manufactures 
ir      .     .     .     . 
dstuffs .     .     . 

2   • 

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> 

>> 

■  0 

id  manufacturi 
d  manufacturi 
and  other  prec 
ations  of,  unsc 
tone,  and  chic 

ibers,      vegetable,      ai 
grasses,  and  manufaci 
Ish  and  flsh  products   . 
rults  and  nuts     .     .     . 
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J< 

s 

^•d-o  g  S 

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05 

.   0 

5  q  03  *2  in     . 

:z; 

grlcultu 
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ther  cat 
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rass.  ani 
Tieat  flc 
ther  bre 

s 

o 

a  s 

58   0 

ill 

hemical 
clnes 
oal    . 
ocoa  or 
offee 
opper,  a 
otton,  a 
lamond 
and  Im 
arthen, 
ggs    . 

1    <!!. 

)C 

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0 

c 

0 

uoc 

oon    minf^    f^^o  ' 

APPENDIX  II 


463 


C>JiNlNO-*O00OO(N^ 

lO  05  rH  00  o  'H  oq  s^  »  (>._  03 

W  t>r  in"  •*"  O  05  iC  to  O  00  <N 


000000000000(0^0000(0 

U5-HO5tO(OO5-H{D-^M00'^ 
i-<  O  05_  >q  ■*_  00  00  ■*  00  to  >0  05 

00  00  CO  M  "S  ■*  -H  hT  ic  00  lO  -< 

OOOtxt^'O'^tOWM'-^OOW 

.Hir50^iNe<5i-t(Nr-it>-o^oo 


0<NtOO(NOO'!fi(NtO-<S<0 

",-(10  10.   — '  ^ 

I  to  to  t>-  UJ  to  CO  o 

■  o  o  CO  t-T  00  ■*"  ■<}*' 
I  ^«•  Tt<  oi  ^  00  CO  05 

I  h-  05  ^  M  00  to  lO 


OQOO<N-*<NOO(N-*OOOC>I 

osot^ooooco-Htocor^iot^ 

C^INtOt^iNi-iiNiOrtOOiOOtO 


i^(>t>.IN05l0  1>0 
»0  lO  h-'  co"  00*  IC  m"  o"  'ij^"  t-"  Oj" 
0000'CCOtO(NO500O3CvIO5 

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CO  rt 


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O^otoodiNorcotococo'ci 

-     ■■  -    00  c  r  ' 

t^  lO  »o  t^ 
IN  > 


OONOOOOOOS^OOOOOi 
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(N  t^  O  CO  t»  "__  0_  ■*  00  Ttt^  O  I 
rt"  lO*  t>r  tC  oo"  -^  -H  O  "5  of  rt*  < 
0>0-H(MiO-<tit003005tO- 
(N<NOMt005t^T)<tOiNtOi 


1-1  IN  N  O  N 


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(>.M(NOO(N05C000tDC0 

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o  co_  r-<^  to_  05_  ^_  '^.  ^  "i  ■*.  "^  '^  "^^ 

■>*"  t>r  05  CvT  of  rH  tC  tC  03*  t>^  tH   .^  f." 

rHiO(Nt^tOOSlN'-i'0(N-*>OOS 
INeOCOtOt^t^t^(OiOCO"5tO<N 


00  Ol  00  00  00  to  C^  O  00  (N  o  o 

00OI00'<t'*'*t^.3itO(NC»  to 

(N  Tfi  00  tO^  lO  iO_  0>_  O  tO_  O  CO  00 

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t^iotOrHeocoo5tooooort  i-i 

lO  tO_^  05  !-<_«>•  (N  rH  iO_  iO_  CO  lO^  ■* 
rH  CO  CO   CO  (N           e^J  rH           rH 


to  .M  (N  00  O 
0-*  "3  0>  t^ 
Ol  <N  lO  to  i-H 


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lO  rt  05  •*  .^  to  to 
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IN  ' 


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t-.  O  ■*_  CO  TiH^  05_  t^_  to  "5  IN  oq_ 
^•-Ttoos-Hiooiio^-^i-ios 

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t>.  CO  "5^  »H  M  03_  >H  0_^  tO_^  "5  t^ 

-Tt^riNofrH  oJlN  r^ 


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''i ''?.  '^  ''I  '?,■*.  ^  R  *i '-'-  "l 
00  to  CO  05  o  00  CO  05  t>r 
-  ■  1  to  CO  o  ""  ■■  " 
^t^  to  N. 

CO  ' 


IN  1^  >0  I 

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(N  05_  ^_^  00  00  0)_  C0_  CO  00  t^  i 

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to  00  00  IN  00_  rH  1-1  to  05  to  t> 
i-n'rHCOoTcO        of(N         CO 


T}<    T-l    to    to    to    ■ 


05  00  00  O  M<  03  IN  CO  O  Ol  lO  0»  CO  to  "5  lO  Tjt  »0 'J*  IN  O  M  P  CO  lO  (N 
05  rttOt^tOCOCOtOiNOOOOOO  t^  OOrHOO!NtD05-HCOOOO'*'0500 
CO        -1  (^  05  O  lO  O  i-H  05  (N  N.  OJ        CO        00  ■*  lO  O  <N  CO  to  CO  O  00  eo  o  t^ 


sw  1-1  .■■^  1-*  '*N  l-»  U^J  u>1 

1-^  <^1  "^  '^.  '-^.  (O  5^  ■* 
1-h"  IN  ■<1<"  ■*  ■*  (N        of  CO 


-HCO        Tt<         iO»OfOt^COtOT}<05tO 
O500         to         tOCOCOIN05000(OCO 

coto      to      iN-HTj<t^tooo      iO'i; 

CO  lO  rHIN 


•  .  IN  CO  00 
to  t~  •<«•  CO 

CO  t^  t^  CO 


iSqS 


I: 

1 

o 


464 


ECONOMIC  CONDITIONS 


TABLE  VII.    IMPORTS,  EXPORTS,   TRADE,  AND  BALANCE 


Years  Ending 
December  31 


1899 
1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 
1913 
1914 
1915 
1916 
1917 
1918 


Imports 


P38,385,972 

49,727,558 

60,324,942 

66,684,332 

67,622,768 

59,155,462 

60,101,100 

52,807,536 

60,907,620 

58,372,240 

62,168,838 

99,438,722 

96,048,814 

123,335,802 

106,625,572 

97,177,306 

98,624,367 

90,992,675 

131,594,061 

197,198,423 


Exports 


P29,693,164 

45,980,746 

49,006,706 

57,343,808 

64,793,492 

58,299,000 

66,909,548 

65,285,784 

66,195,734 

65,202,144 

69,848,674 

81,256,926 

89,674,254 

109,846,600 

95,545,912 

97,379,268 

107,626,008 

139,874,365 

191,208,613 

270,388,964 


Total  Trade 


Po8,079,136 
95,708,304 
109,331,648 
124,028,140 
132,416,260 
117,454,462 
127,010,648 
118,093,320 
127,103,354 
123,574,384 
132,017,512 
180,695,648 
185,723,068 
233,182,402 
202,171,484 
194,556,574 
206,250,375 
230,867,040 
322,802,674 
467,587,387 


Balance  op  Trade 


Favorable   Unfavorable 


P6,808,448 

12,478,248 

5,288,114 

6,829,904 

7,679,836 


201,962 

9,001,641 

48,881,690 

59,614,552 

73,190,541 


P8,692,808 
3,746,812 

11,318,236 

9,340,524 

2,829,276 

856,462 


18,181,796 

6,374,560 

13,489,202 

11,079,660 


TABLE  VIII.     RICE  IMPORTED  FROM  1899  TO  1918 


Years  Ending  De- 

Quantity in 

Value 

Average  Value 

Percentage  op 

cember  31 

Metric  Tons 

per  100  Kilos 

Total  Imports 

1899 

110,142 

P7,047,382 

P6.40 

18.36 

1900     . 

145,838 

8,730,112 

5.99 

17.56 

1901     . 

170,648 

10,216,682 

5.99 

16.94 

1902     . 

290,057 

17,568,776 

6.06 

26.35 

1903     . 

334,339 

25,104,764 

7.51 

37.12 

1904     . 

265,754 

15,421,508 

5.80 

26.07 

1905     . 

219,274 

13,491,950 

6.15 

22.45 

1906     . 

127,053 

7,983,826 

6.28 

15.12 

1907     . 

119,024 

8,333,488 

7.00 

13.68 

1908     . 

158,385 

11,105,142 

7.01 

19.02 

1909     . 

167,125 

9,588,018 

5.74 

15.42 

1910     . 

197,326 

11,982,670 

6.07 

12.05 

1911     . 

183,675 

13,544,494 

7.37 

14.12 

1912     . 

301,057 

26,017,012 

8.64 

21.09 

1913     . 

86,990 

6,329,182 

7.28 

5.94 

1914     . 

96,921 

6,552,296 

6.76 

6.74 

1915     . 

218,442 

13,448,551 

6.16 

13.63 

1916     . 

189,836 

13,043,642 

6.87 

14.33 

1917     . 

146,986 

10,781,463 

7.33 

7.95 

1918 

183,726 

16,433,585 

8.94 

8.33 

APPENDIX  II 


465 


TABLE  IX.    HEMP  EXPORTED  FROM   1899  TO   1918 


To  All  Countries 

Percent- 

To  the  United  States 

Year 

Quantity 

Value 

Value 

Total 

Quantity 

Value 

Value 

m  kilos 

in  pesos 

(1,000  k.) 

Exports 

in  kilos 

in  pesos 

(1,000  k.) 

1899      .     . 

70,152,768 

15,987,148 

P227.89 

53.8 

27,140,408 

6,031,452 

P222.23 

1900      .     . 

90,869,008 

26,580,800 

293.62 

57.8 

20,628,864 

5,593,336 

271.14 

1901      .     . 

126,245,112 

31,953,280 

253.10 

65.2 

30,821,376 

8,314,626 

269.77 

1902      .     . 

113,284,000 

38,581,220 

340.57 

67.3 

61,350,144 

22.178.760 

361.51 

1903      .     . 

139,956,032 

44,001,176 

314.39 

67.9 

71,030,952  23,524,880 

331.19 

1904      .     . 

123,583,192 

41,883,354 

338.95 

71.9 

60,352,432  21,373,792 

354,15 

1905      .     . 

130,437,128 

43,514,688 

338.61 

65.0 

72,919,336  25,296,286 

346.91 

1906      .     . 

104,078,024 

39,225,264 

376.88 

60.1 

56,756,808122,311,100 

393.10 

1907      .     . 

117,241,320 

39,378,986 

335.88 

59.5 

52,454,048 

18,633,078 

355.22 

1908      .     . 

131,382,008 

33,003,912 

251.21 

50.6 

61,309,504 

15,595,852 

254.38 

1909      .     . 

167,953,119 

33,792,000 

201.20 

48.4 

101,533,184 

20,868,082 

205.53 

1910      .     . 

163,173,211 

32,950,622 

201.93 

40.6 

75,528,081 

16.794.620 

222.36 

1911      .     . 

148,202,047 

28,970,254 

195.48 

32.4 

63,580,150!  15,535,580 

212.89 

1912      .     . 

175,137,180 

44,151,342 

252.10 

40.2 

76,006,058  21,558,274 

283.64 

1913      .     . 

119,821,435 

42,242,168 

352.54 

44.2 

47,144,252 

19,574,432 

415.20 

1914       .     . 

116,386,575 

38,389,630 

329.85 

39.4 

50,140,193 

19,238,752 

383.69 

1915      .     . 

142,010,431 

42,678,200 

300.53 

39.7 

69,251,180 

22,702,566 

327.83 

1916       .     . 

137,326,092 

53,384,593 

388.70 

38.1 

66,344,154 

27,279,018 

411.17 

1917      .     . 

169,435,204 

93,615,559 

552.51 

48.9 

95,580,320 

59,291,095 

620.32 

1918      .     . 

169,260,377 

116,383,100 

687.60 

42.9 

86,823,997 

65,468,402 

754.04 

TABLE  X.    QUANTITIES  AND  VALUES  OF  HEMP  EXPORTED 


1918 

1917 

Grade 

Quantity 

Value 

Value 

Quantity 

Value 

Value 

in  kilos 

m  pesos 

(1,000  k.) 

in  kilos 

m  pesos 

(1,000  k.) 

AA— Tagal-one      .     . 

1,197,266 

1,906,891 

Pl,592 

BB— Tagal-two      .     . 

1,241,412 

1,749,842 

1,409 

CC — Tagal-three  .     , 

1,195,339 

1,527,438 

1,277 

DD — Tagal-four    .     . 

510,362 

582,179 

1,140 

EE — Tagal-five      .     . 

254,003 

259,071 

1,019 

A — Extra  prime     .     . 

15,814 

22,948 

1,451 

1,152,643 

1,770,216 

Pi, 535 

B — Prime      .... 

124,226 

129,789 

1,044 

2,360,567 

3,085,422 

1,307 

C — Superior  current  . 

1,343,553 

1,247,232 

928 

5,943,069 

6,330,932 

1,065 

D — Good  current  .     . 

6,512,034 

5,835,297 

896 

7,675,611 

7,044,859 

917 

E — Midway       .     .     . 

16,089,876 

13,591,183 

844 

14.996,615 

11,917,408 

794 

SI— Streaky  No.  1      . 

1,533,051 

1,207,766 

787 

2.003,547 

1,293,279 

645 

S2— Streaky  No.  2     . 

4,959,654 

3,564,988 

718 

4,868,491 

2,838,663 

583 

S3— Streaky  No.  3     . 

3,121,197 

2,018,510 

646 

2,593,126 

1,429,240 

551 

F — Current  .... 

26,828,819 

19,669,308 

807 

24,151,154 

17,118,331 

708 

G — Seconds  .     . 

5,261,173 

3,248,785 

617 

5,738,246 

2,591,037 

451 

H — Brown    .     . 

3,518,181 

1,997,284 

567 

3.355,923 

1,419,070 

422 

I— Good  fair     . 

23,252,039 

17,025,853 

732 

18,297,299 

9,826,569 

537 

J— Fair    .     .     . 

42,873,205 

25,737,681 

600 

23,995,466 

10,390,369 

433 

K — Medium 

11,514,270 

5,724,690 

497 

10,011,423 

3,523,462 

351 

L — Coarse    .     . 

9,316,510 

4,428,486 

475 

19,854,724 

6,383,368 

321 

M — Coarse  brown 

3,314,527 

1,188,962 

358 

6,853,837 

2,046,681 

298 

DL — Daet  coarse 

1,256,910 

419,705 

333 

7,386,935 

2,167,502 

293 

DM— Daet  coarse  bwn 

590,512 

150,061 

254 

3,443,999 

948,030 

275 

Y — Damaged    .     .     . 

524,475 

217,315 

414 

579,464 

137,811 

237 

0 — Strings  (white)     . 

766,469 

262,356 

342 

522,670 

126,380 

241 

OO— Strings  (dark)    . 

495,421 

138,933 

280 

397,321 

71,601 

180 

T— Tow  ...     .     . 

1,408,968 

329,202 

233 

1.863,973 

281,794 

151 

Hemp  sliver      .     .     . 

106,008 

91.364 

861 

Various  grades  .     .     . 

569,124 

320,293 

562 

Hemp  treated  with  oil 

135,103 

109.981 

814 

819,977 

553,242 

674 

Total     .     . 

169.260,377 

116,383,100 

^687 

169,435,204 

93,615.559 

P652 

466 


ECONOMIC  CONDITIONS 


TABLE   XI.    COCONUT   OIL   EXPORTS   TO    ALL    COUNTRIES 


Year 

Kilos 

Value 

1912 

1913 

P              660 

5,010,429 
11,943,329 
13,464,169 
16,091,169 
45,198,415 
115,280,847 

P              80 
1,146,339 
2,619,183 
5,641,003 
7,851,469 
22,818,294 
63,328,317 

1914          

1915 

1916 

1917 

1918 

TABLE  XII.     COPRA  EXPORTS  TO  ALL  COUNTRIES,  AND  TO 
THE  UNITED  STATES,  FROM  1899  TO  1918 


To  All  Countries 

Per- 
centage 

OF 

Total 
Exports 

To  THE  United  States 

Year 

Quantity 
in  kiloa 

Value 

Average 

value 

per 

1,000 

kilos 

Quantity 
in  kilos 

Value 

Average 

value 

per 

1,000 

kiloB 

1899  . 

1900  . 

1901  . 

1902  . 

1903  . 

1904  . 

1905  . 

1906  . 

1907  . 

1908  . 

1909  . 

1910  . 

1911  . 

1912  . 

1913  . 

1914  . 

1915  . 

1916  . 

1917  . 

1918  . 

15,353,175 

64,890,953 

32,517,773 

59,226,854 

82,154,170 

38,572,325 

55,748,625 

60,585,955 

58,622,437 

97,494,971 

109,033,203 

120,483,808 

142,147,546 

142,792,929 

82,219,363 

87,344,695 

139,092,902 

72,277,164 

92,180,326 

55,061,736 

Pl,453,306 

6,364,962 

3,223,676 

5,403,450 

7,639,586 

3,962,244 

6,489,406 

8,747,404 

9,568,302 

12,117,772 

15,345,730 

21,278,098 

26,039,124 

28,366,932 

19,091,448 

15,960,540 

22,223,109 

14,231,941 

16,654,301 

10,377,029 

P94.65 
98.08 
99.13 
91.23 
92.99 
102.72 
116.40 
144.38 
163.22 
124.29 
140.74 
176.60 
183.20 
198.65 
232.20 
182.73 
159.77 
196.90 
180.67 
188.46 

4.9 

13.8 

6.6 

9.4 

11.8 

6.8 

9.7 

13.4 

14.4 

18.6 

22.0 

26.2 

29.0 

25.8 

20.0 

16.4 

20.6 

10.1 

8.7 

3.8 

103,234 

58,995 

176,156 

102,576 

102,504 

377,626 

2,109,002 

3,780,141 

5,943,618 

7,138,109 

15,209,138 

21,192,866 

10,027,813 

18,181,371 

21,217,754 

35,470,438 

68,253,929 

55,061,641 

P8,900 

18,114 

18,708 

12,850 

16,000 

70,200 

395,116 

441,784 

844,356 

1,277,566 

2,756,690 

4,043,106 

2,398,166 

3,212,266 

3,520,090 

7,079,128 

12,235,902 

10,377,011 

P86.21 

307.04 
106.20 
125.27 
156.09 
185.90 
187.35 
116.87 
142.06 
178.98 
181.25 
190.78 
239.15 
176.68 
165.90 
199.57 
179.27 
188.46 

APPENDIX  II 


4G7 


TABLE  XIII.     SUGAR  EXPORTS  TO  ALL  COUNTRIES  AND  TO 
THE  UNITED  STATES  FROM   1899  TO  1918 


To  All  CIoxintries 

Per- 
cent- 
age OF 
Total 
Ex- 

PORTS 

To  the  United  States 

Year 

Quantity 
in  kilos 

Value 

Average 

value 

per 

1,000 

kilos 

Quantity 
in  kilos 

Value 

Average 

value 

per 

1,000 

kilos 

1899 
1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 
1913 
1914 
1915 
1916 
1917 
1918 

85,827,565 

65,190,951 

56,872,593 

98,596,473 

85,307,972 

87,053,051 

108,498,717 

129,453,709 

127,917,216 

144,735,001 

129,327,880 

121,471,544 

209,044,397 

197,075,995 

157,333,707 

236,498,001 

211,012,817 

337,490,000 

205,908,492 

273,258,396 

P6,919,420 

4,794,288 

5,112,626 

6,692,300 

6,650,468 

6,185,504 

10,146,466 

9,108,184 

8,391,342 

11,407,282 

11,216,574 

14,448,770 

22,151,346 

19,600,680 

14,065,778 

22,119,186 

22,620,430 

37,175,185 

24,555,357 

31,608,780 

P80.62 

73.54 

89.89 

67.87 

77.95 

71.05 

93.51 

70.36 

65.64 

78.81 

86.73 

118.94 

105.96 

99.45 

89.40 

93.10 

107.20 

110.15 

119.25 

115.67 

23.3 
10.4 
10.4 
11.7 
10.3 
10.7 
15.2 
13.9 
12.7 
17.5 
16.1 
17.8 
24.6 
17.9 
14.7 
22.7 
21.0 
26.5 
12.8 
11.6 

21,887,428 

2,153,477 

5,225,989 

5,120,133 

29,315,374 

25,897,940 

43,591,777 

11,857,594 

10,989,024 

46,706,756 

53,072,968 

100,700,037 

187,658,886 

133,878,621 

30,716,889 

169,530,115 

82,841,168 

131,885,246 

62,377,758 

106,080,676 

Pl,778,910 

186,944 

586,708 

400,000 

2,271,652 

1,741,248 

4,204,046 

844,222 

807,702 

3,932,332 

5,299,208 

12,428,452 

20,204,206 

14,010,228 

3,128,072 

16,483,706 

10,283,159 

17,267,401 

10,811,518 

16,559,780 

P81.27 

86.81 

112.27 

78.12 

77.49 

67.23 

96.44 

71.19 

73.50 

84.19 

99.85 

123.42 

107.66 

104.65 

101.83 

97.23 

124.13 

130.90 

173.32 

156.11 

TABLE  XIV. 


TOTAL  TOBACCO  EXPORTS  TO  ALL 
COUNTRIES 


Year 

Total  Value 

Percentage  of 
Total  Exports 

1909 

P  6,649,060 

8,818,962 

7,635,762 

10,726,964 

9,933,946 

8,355,064 

7,409,868 

11,652,349 

14,301,801 

27,150,626 

9.6 

1910 

10.8 

1911 

8.5 

1912 

9.9 

1913 

10.0 

1914 

8.5 

1915 

6.9 

1916 

8.6 

1917 

7.3 

1918 

10.0 

468 


ECONOMIC  CONDITIONS 


TABLE  XV.     CIGARS  EXPORTED  TO  ALL  COUNTRIES  AND 
TO  THE   UNITED  STATES  FROM   1899  TO   1918 


To  All  Coxjntkies 

Per- 
centage 
OF  Total 

To  the  United  States 

Year 

Quantity 

Average 

Quantity 

Average 

in 

Value 

value 

Exports 

in 

Value 

value 

thousands 

per  1,000 

thousands 

per  1,000 

1899     . 

196,090 

Pl,891,398 

P9.65 

6.4 

708 

P6,810 

P9.62 

1900     . 

172,659 

2,316,834 

13.42 

5.0 

1,376 

11,324 

8.23 

1901     . 

238,475 

3,664,898 

15.37 

7.5 

72 

1,816 

25.22 

1902     . 

117,852 

1,977,036 

16.78 

3.4 

698 

22,012 

31.54 

1903     . 

118,947 

1,922,710 

16.16 

3.0 

107 

3,800 

35.51 

1904     . 

104,753 

2,011,790 

19.21 

3.5 

57 

2,092 

36.70 

1905     . 

95,739 

1,785,122 

18.65 

2.7 

728 

28,228 

38.77 

1906     . 

108,635 

2,008,014 

18.48 

3.1 

1,690 

59,340 

35.11 

1907     . 

114,665 

2,126,764 

18.55 

3.2 

1,526 

48,400 

31.72 

1908     . 

115,881 

2,118,656 

18.28 

3.2 

1,182 

36,752 

31.09 

1909     . 

151,457 

3,509,058 

23.17 

5.0 

37,076 

1,474,792 

39.78 

1910     . 

184,407 

5,519,322 

29.93 

6.8 

61,526 

3,121,598 

50.74 

1911     . 

134,830 

3,803,726 

28.21 

4.2 

38,112 

1,804,756 

47.35 

1912     . 

190,842 

6,184,128 

32.40 

5.6 

90,000 

3,916,642 

43.52 

1913     . 

191,762 

6,024,468 

31.42 

6.3 

71,513 

3,285,776 

45.95 

1914     . 

154,753 

4,630,318 

29.92 

4.8 

56,205 

2,400,252 

42.71 

1915     . 

134,648 

4,114,605 

30.56 

3.8 

61,170 

2,302,444 

37.64 

1916     . 

193,026 

5,688,751 

29.47 

4.0 

111,478 

4,066,242 

36.47 

1917     . 

284,525 

9,588,192 

33.69 

5.0 

202,199 

7,725,966 

38.20 

1918     . 

359,665 

14,233,437 

39.57 

5.2. 

248,748 

11,365,675 

45.69 

APPENDIX  II 


469 


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470 


ECONOMIC  CONDITIONS 


TABLE    XVII.      FACTORIES    AND    INDUSTRIAL    ESTABLISH- 
MENTS IN  THE   CITY  OF  MANILA   IN   1915 ' 

(Source :  Bureau  of  Labor) 


Factories  and  Establish- 
ments 


NUM- 


Value  op 

Output  in 

1915 


Number  of  Laborers  Engaged 


Male 


Female 


Chil- 
dren 
under 
sixteen 
years 


Total 


Aver- 
age 
Daily 
Hours 

op 
Labor 


Aerated  water    .     .     . 

Bacon 

Bed 

Bread,     biscuit,     and 
sweetmeat  bakeries . 

Breweries 

Button 

Candle 

Candy  

Caramel 

Carpentry  shops     .     . 

Carriage     shops      and 
iron  works .... 

Chocolate      .... 

Cigar  and  cigarette 

Coffee  grinding  mills  . 

Comb 

Dried  and  smoked  fish 

Drug 

Dyeing  establishments 

Electric  power  plants  . 

Fertilizer  2      .     .     .     . 

Fish  traps  ^    .     .     .     . 

Foundries,  iron  works 
and  machine  shops  . 

Furniture 

Gas  plants     .... 

Hat  and  umbrella  .     . 

Ice  plants      .... 

Ink2 

Line 

Machine  shops,   foun- 
dries and  shipyards . 

Match 

Musical  instruments   . 

Oil  3 

Preserved  foodstuff 


9 
1 
1 

46 

2 

1 

9 

11 

14 

54 

41 

29 

32 

2 

3 

27 

1 

4 

1 

1 

17 

52 
23 
1 
15 
3 
1 
2 

1 

1 

12 

1 
6 


P248,460 

12,000 

112,288 

1,603,079 
1,745,000 

759,821 
366,513 
756,646 
224,011 

153,123 

318,305 

11,777,591 

15,400 

13,131 

689,614 

15,754 

1,536,457 

4,061 

4,955 

549,734 

744,518 

243,998 

1,429,671 

221,684 

692 

12,979 

512,866 
374,000 

16,795 
189,208 

20,000 


136 

5 

25 

615 
196 
180 

46 
131 

89 
147 

268 

99 

4,961 

4 

7 

120 

11 

19 

214 

8 

52 

425 
304 

89 
316 

84 
1 
4 

325 

123 

24 

21 

15 


16 


3 
3,465 


1 
448 

1 


149 

100 
55 


3 
31 


3 
30 


155 
5 

28 

615 
232 
200 

46 
131 

89 
147 

269 

102 

,874 

4 

7 

128 

14 

19 

214 

8 

52 

425 
307 

89 

496 

84 

1 

4 

328 

253 

24 

21 

70 


*  Latest  available  data.  ^  without  definite  hours. 

» In  1918  there  were  18  oil  factories. 


APPENDIX  II 
TABLE  XVII.— (Cmtinued) 


471 


Factories  and  Establish- 
ments 


Printing  and  binding 
of  books     .... 

Rice  mills      .... 

Rope 

Sails  constructing    .     . 

Saw-mills 

Sculpture  and  marble 
cutting  shops       .     . 

Shoes,  slippers  and 
other  leather  goods . 

Soap 

Soup-paste  and  sauce . 

Spinneiy 

Tanneries       .... 

Tile  and  brick    .     .     . 

Tin  shops       .... 

Trunk,  harness  and 
other  leather  goods . 

Weaving 

Wheel 

Wine  and  liquor  dis- 
tilleries   

Total      .     .     .     . 


Num- 
ber 


43 
2 
2 
4 

21 

18 

172 

40 

13 

1 

7 

2 

51 

9 
1 
2 

11 


823 


Value  op 

Output  in 

1915 


P633,171 

1,141,608 

106,000 

27,578 
1,584,937 

74,603 

1,328,987 

1,023,378 

163,859 

22,400 

272,184 

66,977 

299,113 

192,927 

214,000 

10,349 

2,490,561 


34,324,986 


Number  op  Laborers  Engaged 


Male 


617 
59 
78 
13 

636 

93 

800 
143 
86 
12 
37 
50 
118 

120 

105 

5 

160 


12,196 


Female 


41 

7 
30 


1 
100 


20 


4.102 


Chil- 
dren 
under 
sixteen 
years 


19 

27 

1 


583 


Total 


677 

66 
135 

13 
637 

94 

842 
144 
95 
12 
37 
50 
118 

121 

213 

5 

181 


16,881 


Aver- 
age 
Daily 

Hours 

OP 

Labor 


8 
13 
8 
9 
9 

9 

8 
8 
9 
9 
10 
8.5 
9.5 

9 
11 

0 


1  Production  of  20  saw-mills  only. 


2  Without  definite  hours. 


INDEX 


Abaca,  6,  7,  84-106,  190,  230,  246,  252, 
253 ;  new  uses  of,  103-104 

Advance  and  debt  system,  86,  119,  158, 
228,  240-242,  247,  250,  308-309.  See 
also  Bonded  debtors 

Agave  fibers,  93,  164-166 

Agricultural  implements,  of  Negritos, 
3;  of  Subanuns,  5;  of  mountain 
peoples,  9, 10 ;  of  Filipinos,  27,  38,  39, 
41,70 

Agricultural  machinery,  29-32,  41-52, 
202-206,  305 

Agriculture,  of  Negritos,  3;  of  Suba- 
nuns, 5-6;  of  mountain  peoples,  9- 
17 ;  of  Filipinos,  25-317,  371,  447-452; 
location  and  character  of,  178-186; 
advance  in,  187-219,  422 

Alcoholic  beverages,  of  Subanuns,  6; 
of  Filipinos,  11,  120,  289.  See  also 
Beverages 

Amusements,  of  Negritos,  4 ;  of  Suba- 
nuns, 8 ;  of  Filipinos,  295-299 

Animals,  323-338.  See  also  Work  ani- 
mals 

Area,  220 

Arrowroots,  75 

Artesian  wells,  192 

Artisans,  379 

Athletics,  297-299 

Balance  of  trade,  395-398 

Bananas,  76,  169,  170 

Banks,  279,  384,  428-432 

Barter,  1;  of  Negritos, '^i-,  of  Subanuns, 
6-8 ;  of  Filipinos,  422-427 

Beans,  12,  25,  66,  74,  75,  79-80 

Beasts  of  burden,  see  Work  animals 

Beetles,  113-114 

Beriberi,  26 

Beverages,  of  Subanuns,  6;  of  moun- 
tain peoples,  16-17 ;  of  Filipinos,  11 

Bonded  debtors,  247-250,  305-308 

Bontoks,  see  Mountain  peoples 

Bounty  system,  129-132 

Brokers,  85,  98,  158,  366-368,  371 

Bud  rot,  114,  115 

Bugnos,  240 

Busian  system,  see  Rent 

Buyers,  see  Brokers 

By-product,  375-376 

Caciquism,  23,  86,  267-270  - 
Calamities,  187-189 


Camote,  see  Sweet  potatoes 

Capital,  304,  383-385,  447 

Capitalists,  46 

Carabao,  323-324.  See  also  Work  ani- 
mals 

Carbohydrates,  79 

Cassava,  75,  174 

Catch,  division  of,  341 

Cattle,  324-325 

Champaca,  173 

Chinese,  i:36,  313,  314,  419-421 

Citrous  fruits,  169 

Civilization,  21 

Clearings,  202,  224.   See  also  Kaingin 

Climate,  180-181 

Clothing,  of  Negritos,  3 ;  of  Subanuns, 
6;  of  mountain  peoples,  12;  of  Fili- 
pinos, 241,  295 

Coal,  444-445,  448-450 

CockfightiHg,  296-298 

Coconut,  107,  125,  246,  253 

Coconut  oil,  108 

Coffee,  173-174,  199 

Cogon  grass,  5 

Coir  fiber,  107 

Commerce,  22,  153-154,  392-440;  of 
Negritos,  4;  of  Subanuiis,  8;  of 
mountain  peoples,  18;  of  Filipinos, 
392-407,  446-447;  domestic,  406-407. 
See  also  Barter 

Communal  labor,  see  Group  labor 

Contract  labor,  227-231,  313-316 

Co(")peration,  46,  229.  See  also  Group 
labor 

Copra,  107-125 

Corn,  5,  12,  25,  37,  64-73,  78 

Cotton,  6,  7,  14,  199-200 

Credit,  421,  428-432 

Crop,  division  of,  242,  244-246,  252-253 

Crops,  cultivation  of  {by  Subanuns,  5- 
6;  by  mountain  peoples,  9-10;  by 
Filipinos,  26-27);  diversity  of,  78, 
211-215;  introdtiction  of  neto,  175; 
rotation  of,  206  {by  mountain  peoples, 
12,  71,  80) 

Cultivation  of  crops,  by  Subanuns,  5-6 ; 
by  mountain  peoples,  9-10;  by  Fili- 
pinos, 26-27 ;  systems  of,  226-261 

Death  rate,  285-286 

Debt  and  debt  systems,  see  Advance 

and  debt  system.   Bonded   debtors, 

Kasama  system 


473 


474 


ECo:s^OMic  coNDiTio:^rs 


Disease,  291-294 

Domestic  animals,  of  Suhanuns,  6;  of 

mountain  peoples,  12;   of  Filipinos, 

323-329 
Domestic  commerce,  406-407 
Drouglit,  37,  40,  40,  69,  85,  115,  171, 

189-197,  213 
Dry  farming,  190 
Dry  season,  26,  46,  49,  50,  75.     See  also 

Drought 

Education,  255-258,  268,  298,  301,  304. 

See  also  Industrial  instruction 
Emigration,  see  Immigration 
Essential  oils,  173 
Estates,  see  Proprietary  system 
Exchange,  392-440.  <See  also  Commerce 
Export  crops,  38-40,  84-177 
Exports,  see  Foreign  trade 

Factory  system,  372-377,  448.   See  also 

Industrial  revolution 
Family,  284 
Famine  foods,  77-79 
Fermented  beverages,  see  Beverages 
Fertilizers,    207;    tised    by    mountain 

peoples,  10;  used  by  Filipinos,  46,  71 
Fiestas,  230,  242,  247,  299 
Filipinos,  23  f¥. 

Fish,  25,  26,  66,  74,  288,  3.39-346 
Fishing,  by  Negritos, 2;  by  Subanuns, 

6;  by  Filipinos, '3'69-'Si() 
Floods,  184,  187-188 
Food,  of  Negritos,  2-3;   of  Subanuns, 

5-6;    of  Filipinos,  25,  66-70,  75-82, 

227-228,  229,  241,  286-291,  342-345 
Food  crops,  25-83 
Foods,  rice,  corn,  and  wheat  as,  25-26; 

supplementary,  68,74-75;  of  luxury, 

75-79 ;  famine,  77-79 
Forage,  329-330 
Foreign  trade,  393-406 
Forestry,  among  mountain  peoples,  17 ; 

among  Filipinos,  347-358,  447 
Free  trade,  142,  150 
Fruits,  75-77,  131,  168-170,  283 

Gambling,  296-299 

Goats,  328 

Granaries,  of  Subanuns,  7;  of  moun- 
tain peoples,  12;  of  Filipinos,  32,  69 

Group  economy,  primitive,  22 

Group  labor,  21;  among  Subanuns,  6; 
among  mountain  peoples,  10,  18; 
among  Filipinos,  46,  247,  278-284 

Guava,  169 

Haciendas,  see  Proprietary  system 
Handicrafts,  see  Household  manufac- 
ture 
Harr6w,  203 
Hawaii,  314-316 


Henequen,  164 

Hired  labor,  234 

Homesteads,  262-264 

Horses,  325-326 

Household  manufacture,  189,  234,  235, 
255,  257,  365-372,  376-377.  See  Indus- 
trial revolution 

Housing,  see  Shelter 

Human  needs,  20-23 

Hunting,  by  Negritos,  2 ;  by  Subanuns, 
6;  by  mountain  peoples,  9 

Ifugaos,  see  Mountain  peoples 
Igorots,  see  Mountain  peoples 
Ilang-ilang,  173 
Immigration,  224,  277,  361-364 
Import's,  rice,  34-40.    See  also  Foreign 

trade 
Improvidence,  5,  32,  34,  37-38 
Income,  234,  242,  250,  255 
Industrial  instruction,  304,  370,  379-380 
Industrial  revolution,  441-446 
Insurance,  280-281 
Interest,  158,  240-242,  252-253,  266-267, 

428-432 
Interleasing  share  system,  256 
Iron  work,  see  Metal  work 
Irrigation,  189-197;   of  Subanuns,  10; 

of  mountain  peoples,  18;  of  Filipinos, 

26,  38,  46-47 

Kaingin,  3,  5,  9,  26 
Kapok,  167-168 
Kasama  system,  239-251 

Labor,  275,  447;  division  of,  21,  22, 
374,  392  {among  Negritos,  3,  21; 
among  Subanuns,  6,  22;  among 
mountain  peoples,  10,  15,  16,  17; 
among  Filipinos,  374) ;  on  share, 
28,  68  (see  Share  system) ;  dignity  of, 
37,  302-305;  agricultural,  i(«,  171, 
220-267,  275-317;  contract,  227-231, 
313-316;  hired,  2'oO',  village,  group, 
fraternal,  or  companionship,  275- 
284;  i7i  common,  275-284;  efficiency 
of,  284-301;  manual,  302-305;  re- 
loardfor,  305-308 ;  incentive  to,  308- 
310;  mobility  of,  310-313 ;  plantation, 
313-316;  factory,  377-382 

Labor  unions,  380-382 

Land,  220;  parcels  of,  184, 185, 220-226, 
232,  242-244,  441-446 ;  tenure  of,  220- 
274,  276-278;  ownership  of,  221; 
diminishing  returns  from,  261; 
titles  to,  265-266 

Landlords,  225,  237-256,  260-261 

Landowners,  large,  38,  86-98  (see  also 
Proprietary  system  and  Caciquism) ; 
small  {see  Small  farmers  and  Peasant 
proprietors) 

Leaseholds,  see  Share  systems 


INDEX 


475 


Locusts,  200 
Looms,  see  Weaving 
Lumber,  see  Forestry 

Machinery,  99,  116-118,  134-136,  140. 
See  also  Agricultural  machinery  and 
Factory  system 

Maguey,  see  Agave  fibers 

Malnutrition,  26 

Mango,  169 

Manorial  system,  237-239 

Manufactures,  22;  of  Negritos,  3;  of 
Sabanuns,  7;  of  mountain  peoples, 
14-16 ;  of  Filipinos,  447,  448.  See  also 
Manufacturing  a?«? Household  manu- 
factures 

Manufacturing,  359-391 

Markets,  142-143,  15(>-ir)3,  414-422 

Meat  supply,  of  Negritos,  2;  of  Saba- 
nuns, 6;  of  mountain  peoples,  12; 
of  Filipinos,  25,  66,  288-289,  333-336 

Merchants,  22,  417-422;  among  moun- 
tain peoples,  18;  among  Filipinos^ 
18,  34,  158,  371,  417-422 

Metal  work,  of  Subanuns,  7;  of  m,oun- 
tain  peoples,  15,  16 

Middle  class,  261-262 

Middlemen,  see  Brokers 

Migrations,  of  Negritos,  4;  of  Suba- 
nuns, 5-3;  of  mountain  peoples,  \A', 
of  Filipinos,  28,  310-313,  361-364. 
See  also  Immigration 

Milk,  286 

Millets,  75 

Mining,  bij  Igorots,  17 ;  brj  Filipinos, 
447,  448-449 

Money,  22,  154,  424-428;  of  mountain 
peoples,  18 ;  of  Filipinos,  424-428 

Monopoly,  97,  128,  153-156,  158;  price 
fixed  by,  433-434 

Mountain  agriculture,  9-10 

Mountain  peoples,  9-19,  276 

Mulch,  190 

Musical  instruments,  of  Negritos,  4; 
of  Subanuns,  8 

National  economy,  23 
Negritos,  2-4,  21 

Oranges,  168 

Ornaments,  of  Negritos,  3-4 ;  of  Suba- 
nuns, 6,  8 

Palm  starches,  75,  78,  79 

Parcels,  size  of,  185,  220-226,  232,  242, 

441-446 
Peasant  proprietors,  231-235,  25(5-268, 

284.    See  also  Small  farmers 
Peoples,  primitive,  1-23 
Pests,  41,  69,  70,  85,  113-114,  172,  174, 

197-202 
Pig,  wild,  114,  171 


Pineapples,  108,  169 

Plantations,  86,  100.    See  also  Labor 

Plow,  203 

Population,  density  of,  77,  359-365 

Pottery,  of  Negritos,  4 ;  of  Subanuns, 

7;  of  mountain  peoples,  16 
Poultry,  283,  328-329 
Power,  140,  372-375,  377-378,  444,  448- 

450 
Price,  32,  87-103,  119-123,  164,  171,  411, 

432-434 
Private  ownership,  see  Land 
Production,  systems  of,  21-23;  cost  of, 

41,  138;  factors  of,  244-240;  division 

of,  392 ' 
Profit,  42,  153,  240-241,  421 
Proprietary  system,  226-231,  256-268 
Protein,  25,  74,  79 
Public  lands,  262-264 

Quality,  increase  in,  115-119, 152,  156- 
162 

Railroads,  120,  408,  411-412 

Rainfall,  180 

Rainy  season,  26,  49,  50 

Red  weevil,  114 

Rent,  235-2;i6,  244-246,  252-255,  277 

Responsibility,  258,  259 

Rhinoceros  beetle,  113 

Rice,  25-03,  68,  69,  70,  78,  206,  207,  213, 
236,  244-245,  247,  276;  cultivation  of 
(by  Subanuns,  5;  by  mountain  peo- 
ples, 9-10;  by  Filipirios,  26-27,  40; 
see  also  Agricultural  implements  and 
Machinery) ;  fermentation  of,  6 ;  as 
money,  18;  food  value  of,  25-26; 
milling  of,  32 ;  threshing  of,  32 ;  con- 
sumption of,  34,  54-57;  imports  of, 
34-40;  short  crops  of,  40  (see  also 
Drought) ;  increase  in  production  of, 
40-52;  yield  of,  47;  extensive  culti- 
vation of,  48-52;  price  of,  53-57; 
situation  of,  in  1919, 62-56 ',  future  of, 
56-57 

Rice  colonies,  51 

Rice  fields,  of  mountain  peoples,  9-10; 
of  Filipinos,  27 

Rice  harvest,  among  mountain  peoples, 
10;  among  Filipinos,  28,  42,  234, 
310-313 

Rinderpest,  37,  41,  330-336 

Roads,  408,  410,  411 

Rotation  of  crops,  206 ;   by  mountain 

peoples,  12,  71,  80 
Rubber,  170-172 

Sago,  174 
Salt,  17 

Sanitation,  283,  291-295 
Savings,  of  Subanuns,  7 ;  of  Filipinos^ 
2M,  281-282,  308-310,  3&4 


476 


ECONOMIC  CONDITIONS 


Scattered  holdings  system,  251-255 

Schools,  81 

Seed,  selection  of,  44,  70,  208-211 

Servants,  see  Labor  and  Bonded  debtors 

Share  systems,  237-268,  341 

Shelter,  of  Negritos,  ^',  of  Subanuns, 
6;  of  mountain  peoples,  14;  of  Fili- 
pinos, 241,  291-294 

Silk,  172-173 

Slaves,  128,  133,  248.  See  Bonded 
debtors  and  Kasama  system 

Small  farmers,  34,  85-86,  98,  156-159. 
See  also  Peasant  proprietors  and 
Tenants 

Soil,  178;   exhaustion  of,  206-208 

Speculation,  171 

Spinning,  among  Suhanuns,  7 ;  among 
mountain  peoples,  14 

Standard  of  living,  286-301,  364 

Starches,  174 

Storage,  see  Granaries 

Subanuns,  5-9 

Sugar,  16,  77,  126-149,  226-229,  245 

Sweet  potatoes,  9,  12,  74 

Swine,  326-327 

Takalanan,  241 

Takipan,  241 

Tapahan, 116 

Taro,  75 

Temperature,  180-181 

Tenants,    225,  226,   236-255.     See  also 

Small  farmers  and  Share  system 
Tenure,  see  Land  tenure 
Terkiaan,  241 

Tobacco,  5,  66,  77,  150-163,  231 
Tobacco  monopoly,  37 
Town  economy,  primitive,  22 
Towns.  22 


Trade,  see  Barter  and  Commerce 

Traders,  422-425 ;  wandering,  18,  422- 
425 

Transportation,  382-383,  408-414;  of 
Suhanuns,  8;  of  mountain  peoples, 
16,  18;  of  Filipinos,  41,  87,  181,  408- 
414;  centers  of,  414-417.  See  also 
Railroads,  Roads,  Waterways 

Tuba,  119 

Turnuhans,  280-283 

Typhoons,  115,  171,  180,  187-189,  194 

Uang,  see  Rhinoceros  beetle 

Vegetables,  77,  79-82,  230 
Village  labor,  275-284 
Volcanoes,  188-189 

Wages,  28,  42,  227,  231,  246-247 

Wandering  traders,  18,  422-424 

Wants,  diversified,  20  r\ 

Waste,  165.    See  also  By-product  Vy 

Water  190 

Waterways,  412,  414-417 

Wealth,  20-23,  154 ;  for  ostentation,  4, 
6,  8,  20,  383-386 ;  of  Negritos,  4 ;  of 
Subanuns,  8;  distribution  of,  22-23 
{by  Negritos,  2,  21;  among  mountain 
peoples,  23) 

Weaving  (loom),  among  Subanuns,! ', 
among  mountain  peoples,  14;  among 
Filipinos,  84,  368 

Work  animals,  among  Subanuns,  8; 
among  mountain  peoples,  12,  18;' 
among  Filipinos,  37,  40-41,  244,  245, 
246,  257-264,  323-326,  329-336 

Yams,  75.  78 


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